Overview
- CPCA data released in early June show China’s retail passenger car sales fell about 22.1% year‑on‑year in May to roughly 1.51 million units while NEVs (battery EVs and plug‑in hybrids) captured a record 62.9% share.
- Internal‑combustion vehicle sales collapsed roughly 39% year‑on‑year in May, making ICE decline the main driver of the overall market contraction.
- Chinese NEV exports surged, with industry figures reporting NEV shipments up about 112.6% year‑on‑year and NEVs accounting for roughly 54% of passenger car exports as manufacturers pushed output abroad.
- Tesla’s China retail sales rebounded in May to about 47,281 units (roughly +22.5% YoY) while its Shanghai plant exported 38,701 vehicles, underscoring how domestic recovery and exports are both supporting production.
- The CPCA has cut its 2026 outlook toward an approximate 11% contraction and warned that oil prices, consumer caution after subsidy rollbacks, dealer losses and production bottlenecks will shape whether the market recovers later in the year.