Passenger car retail sales fell 23% and wholesale fell 5% in August 2026. Retail sales of passenger cars fell by 5% in August 2026, and retail sales grew at a much weaker rate than the wholesale growth rate, forming a pattern of internal cooling and external heat. The current competitive characteristics of the domestic car market stock are prominent, export demand has skyrocketed, and the segmentation within the industry continues to intensify. The new energy market bid farewell to global growth, showing a polarized trend of “the explosion of high-end electric vehicles and pressure on micro electric vehicle models”. The decline in the county and rural markets and entry-level models was too great. At the same time, the “new car effect” has been shortened, and its driving effect on the market has been greatly reduced. Pressure on the channel side continues to be prominent, the pace of passive inventory removal in the industry is speeding up, and dealers are generally losing money and operating risks are rising. Overall, the month-on-month strengthening of the car market in August was only a structural restoration. Iteration of electrification and overseas exports have become the core support for the long-term growth of the industry. Looking at the structure, the wholesale side of large-size, high-end A0, B, and C-class SUVs showed outstanding growth, while demand for traditional cars and mini and small MPVs weakened, reflecting a shift in consumption towards medium and large SUVs, divergence in wholesale and retail trends, and increased channel inventory pressure.

Passenger car retail sales fell 23% and wholesale fell 5% in August 2026. Retail sales of passenger cars fell by 5% in August 2026, and retail sales grew at a much weaker rate than the wholesale growth rate, forming a pattern of internal cooling and external heat. The current competitive characteristics of the domestic car market stock are prominent, export demand has skyrocketed, and the segmentation within the industry continues to intensify. The new energy market bid farewell to global growth, showing a polarized trend of “the explosion of high-end electric vehicles and pressure on micro electric vehicle models”. The decline in the county and rural markets and entry-level models was too great. At the same time, the “new car effect” has been shortened, and its driving effect on the market has been greatly reduced. Pressure on the channel side continues to be prominent, the pace of passive inventory removal in the industry is speeding up, and dealers are generally losing money and operating risks are rising. Overall, the month-on-month strengthening of the car market in August was only a structural restoration. Iteration of electrification and overseas exports have become the core support for the long-term growth of the industry. Looking at the structure, the wholesale side of large-size, high-end A0, B, and C-class SUVs showed outstanding growth, while demand for traditional cars and mini and small MPVs weakened, reflecting a shift in consumption towards medium and large SUVs, divergence in wholesale and retail trends, and increased channel inventory pressure.