China's Passenger Car Retail Sales Forecast to Rise in August, EV Share Grows

China's passenger car retail sales are estimated to reach 1.58 million units in August 2026, an increase of 8.1% compared to July, according to a forecast by the China Passenger Car Association (CPCA). However, this figure represents a year-on-year decrease of 21.7%.

In July, retail sales of passenger cars stood at 1.46 million units, down 20.9% from the previous year. Sales of traditional fuel vehicles saw a significant drop of 40.5%, while NEV sales declined by a smaller 3.9%. NEVs continued to hold a strong market presence, accounting for 65.1% of total sales.

The CPCA projects that NEVs will capture an even larger share of the market in August, reaching approximately 65.8%, with an estimated 1.04 million units sold. The automotive market experienced fluctuations in August, influenced by factors such as summer holidays, heatwaves, and typhoons, which initially dampened consumer traffic.

Despite a generally slow August season, sales momentum gradually built up. Traditional fuel vehicles continue to face pressure from high fuel costs and aging product lines. In contrast, the NEV segment is demonstrating new avenues for structural growth within the industry.