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China's domestic car market collapses

Exports remain stable

Oct 12, 2026 10:47 77

China's domestic car market collapses - 1

Automobile sales in China fell 28.1% year-on-year in September 2026, as the world's largest auto market continued to decline for the 12th consecutive month. At the same time, Chinese manufacturers reported a sharp increase in exports, Reuters reported.

According to data from the China Passenger Car Association (CPCA) published on October 12, 1.63 million cars were sold in the domestic market in September. The decline deepens compared to August, when sales fell 23.7% year-on-year.

Amid weakening domestic demand, Chinese auto companies continue to expand their presence in international markets. In September, passenger car exports reached 923,000 units, an increase of 73.2% compared to the same month of the previous year.

Despite the significant growth, the rate of increase in exports slowed slightly compared to August, when an annual jump of 77.5% was reported. However, the data show a clear discrepancy between the development of the domestic and foreign markets.

The continued decline in sales in China is putting manufacturers under pressure to seek new opportunities for the sale of their products. International expansion is becoming a key tool to compensate for the weaker demand in the country.

The trend is also important for the European automotive industry, as the increased presence of Chinese manufacturers in international markets increases competitive pressure on established automotive companies.