According to an analysis by Cui Dongshu, Secretary-General of the China Passenger Car Association, the automotive market showed segmented trends and varying manufacturer performance in March 2026. China's macroeconomy maintained strong growth, and supported by national consumption promotion policies, the automotive market continued to expand robustly. In 2025, the overall automotive market performed strongly, with noticeable recoveries in the truck and bus segments. However, due to significantly reduced policy support in 2026 compared to the previous year's strong incentives, passenger vehicle retail sales experienced continued negative growth from January to March. Despite this, manufacturer sales growth remained relatively stable in March, supported by increased exports.
New energy vehicle (NEV) sales were subdued in March, while the automotive export market continued to strengthen. Manufacturer inventory levels saw little change, with no significant end-of-quarter inventory buildup observed across the industry. In 2026, the commercial vehicle market exhibited structural growth driven by equipment renewal subsidies, leading to accelerated electrification in logistics and transportation sectors and high industry sentiment.
Overall, the automotive market remained stable in March 2026, with total sales reaching 2.89 million units, a slight decrease of 0.1% year-on-year. Cumulative sales from January to March totaled 7.05 million units, down 5% year-on-year. The truck market performed strongly, while passenger vehicles and buses were relatively weaker. Exports remained robust amid domestic softness, contributing to steady overall manufacturer sales.
China's automotive exports have surged in recent years, accounting for 32% of total sales in 2026, a significant increase from 19% in 2025. Exports have become a crucial component supporting the scale growth of China's automotive industry.
Manufacturer performance varied significantly. In 2022, the pandemic placed considerable pressure on traditional automakers, particularly with the dual impact of NEV competition and pandemic disruptions. State-owned large groups showed divergent results: GAC and Chery performed excellently, with Chery demonstrating strength in both commercial and passenger vehicle segments. In contrast, automakers such as FAW, Great Wall, and BAIC in northern China faced challenges.
In early 2023, NEV development further polarized market performance. Central state-owned enterprises saw notable divergence, with some state-owned players falling behind. NEV manufacturers like Byd Company Limited performed strongly, while Chery and Tesla also showed robust results. Second-tier automakers experienced performance splits due to transitions between traditional and new energy technologies and ongoing losses in the NEV segment, leading to severe struggles among small and medium-sized independent brands.
By 2024, the competitive landscape among automotive groups had transformed significantly. Byd Company Limited increased sales volume through new product launches and price reductions, benefiting from strong domestic demand and overseas contributions. Chery, Geely, and Dongfeng performed well, while SAIC continued to decline sharply. NEV manufacturers Byd Company Limited and Tesla showed divergent growth rates.
The automotive market underwent substantial shifts in manufacturer positioning, with intense performance variations. Starting in 2025, private enterprises began replacing state-owned enterprises as industry leaders, with Geely, Byd Company Limited, Chery, and Great Wall maintaining high growth rates. A strong first-quarter performance became a key focus for manufacturers. Despite a challenging market, SAIC, Geely, Dongfeng, and BAIC showed improved growth from January to March 2026.
The manufacturer landscape stabilized in 2025, with independent brands significantly raising their market position. Manufacturer sales were generally favorable in March 2026, though weak retail demand weighed on passenger vehicle makers. Some manufacturers, including Byd Company Limited, showed strong month-on-month growth compared to February. SAIC Passenger Vehicle and Changan Automobile improved year-on-year, though Byd Company Limited still faced substantial adjustments in March sales compared to the same period last year.
In March 2026, sales of narrow passenger vehicles totaled 2.38 million units, down 2% year-on-year. Cumulative sales from January to March reached 5.87 million units, a decrease of 7%. In recent years, NEV technological innovation and new product competitiveness have continued to rise, while new fuel vehicle launches have lagged. NEVs entered an adjustment phase in early 2026, with dealer confidence low, restraining growth. Independent passenger vehicle manufacturers led comprehensively in 2026.
Major passenger vehicle manufacturers were generally weaker in March, with independent brands outperforming and joint ventures underperforming. Byd Company Limited led, followed by Geely in second place, and Chery maintaining third position, with the top three manufacturers gradually closing the gap in scale. Joint ventures such as FAW-Volkswagen and SAIC Volkswagen remained subdued. The passenger vehicle manufacturer camp polarized rapidly, with export-focused and NEV-focused players performing strongly. Joint venture performance varied notably, though Toyota showed relative strength.
NEV passenger vehicle manufacturer sales reached 1.14 million units in March 2026, up 1% year-on-year. Cumulative sales from January to March totaled 2.73 million units, down 4%. Early 2026 saw pressure from scrappage renewal subsidies, manufacturer price resistance, and weak pre-holiday NEV demand, leading to subdued domestic NEV sales.
Traditional fuel-powered narrow passenger vehicle sales totaled 16.66 million units in 2023, roughly flat year-on-year. Sales fell to 14.95 million units in 2024, down 10%, and further declined to 14.22 million units in 2025, down 5%. From January to March 2026, sales dropped to 3.14 million units, down 9%. With high oil prices, the traditional fuel vehicle market remained weak in 2026.
Bus manufacturer sales reached 750,000 units in 2023, up 3% year-on-year. Sales rose to 800,000 units in 2024, up 6%, and increased to 920,000 units in 2025, up 15%. From January to March 2026, sales fell to 180,000 units, down 18%, with limited support from exports and NEV logistics vehicles. After a strong year-end performance in 2025, bus sales moderated in 2026. Leading manufacturers such as SAIC Maxus performed well in recent months, while SAIC-GM-Wuling results were average. Demand for light and mini buses in logistics fluctuated significantly, though exports contributed substantially.
In 2026, Jiangling Motors and SAIC Maxus showed strong commercial vehicle performance. Changan, Jiangling, and Yutong experienced significant month-on-month rebounds in March.
Truck manufacturer sales reached 3.54 million units in 2023, up 19% year-on-year. Sales fell to 3.35 million units in 2024, down 3%, before rising to 3.72 million units in 2025, up 11%. From January to March 2026, sales reached 1 million units, up 8%, indicating a strong start to the year. Truck manufacturer performance diverged noticeably, with leading players such as Foton, FAW, Wuling, and Jiangling surging year-on-year in March. Heavy-duty truck sales grew sharply, with pure electric heavy-duty trucks performing strongly. FAW, Shaanxi Automobile, and Sinotruk showed solid growth, maintaining a relatively stable industry structure.
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