The mid-year performance review for China's automotive market in 2026 is now complete, revealing a landscape of intense competition and a widespread struggle to meet annual sales targets. According to preliminary data from the China Passenger Car Association, retail sales of passenger vehicles in the first half of the year totaled 8.701 million units, a decline of 20.2% year-on-year, indicating the industry has entered a new phase of competition within a saturated market.
Traditional automakers generally showed weak growth, with Chery Auto posting the highest growth rate at just 7%. Three others managed only marginal increases between 1% and 2.5%, while another three experienced sales declines. New energy vehicle (NEV) makers, as a group, performed better than their traditional counterparts, with only two seeing declines. However, their growth momentum has noticeably decelerated. ZEEKR, NIO Inc. (NIO), and Leapmotor led with growth rates of 97%, 67%, and 61% respectively, while Li Auto and XPeng Inc. (XPEV) saw their sales trend downward.
Assessing Annual Target Progress
The situation appears even more challenging when examining the rate of progress toward annual sales goals. Among the automakers tracked, only ZEEKR has surpassed the 50% halfway mark for its annual target. All others are below 45%. SAIC Motor, Geely Group, Chery Group, and NIO Inc. (NIO) are in a relatively better position with completion rates above 40%. Harmony Smart Mobility (Hongmeng Zhixing) has the lowest rate at just 24.2%, followed by Xiaomi Auto and XPeng Inc. (XPEV), which have both just crossed the 30% threshold.
Electrification and Export Trends
In terms of electrification, among traditional automakers, only BYD Company Limited (BYD) has achieved full electrification. Geely Auto has the next highest NEV sales ratio at 56.2%, while all others are below 40%: SAIC Motor at 38.9%, Chery at 35%, and Changan Auto at 34.3%. GAC Group did not disclose specific NEV sales but reported that energy-saving and new energy vehicles accounted for 62.8% of its sales.
Regarding export share, Chery Auto leads with 69.5% of its sales coming from overseas markets, followed by Great Wall Motor Company Limited (GWM) at 49.8%. BYD Company Limited's (BYD) overseas sales also accounted for a significant 43.6% of its total. All other traditional automakers had export shares below 40%, with Geely Auto and GAC Group at relatively low levels of 12.9% and 15.7% respectively. Most NEV makers have not separately disclosed their overseas sales figures.
A concerning trend is that while most automakers have increased exports, their domestic sales have declined sharply. Chery Auto, with the highest export ratio, saw its domestic sales plunge 42% in H1. BYD Company Limited (BYD) experienced a 39% domestic decline, while Changan Auto and Great Wall Motor Company Limited (GWM) also saw drops exceeding 20%. Among the seven major traditional automakers, only Geely Group recorded a marginal 0.8% increase in domestic sales. While exports have opened a new growth avenue amid the overall domestic market downturn, maintaining a stable domestic base remains crucial.
Traditional Automakers: A Mixed Picture
SAIC Motor reclaimed the top spot, with total H1 sales reaching 2.045 million units, a slight 0.4% decrease that essentially matches last year's performance. It was the only automaker to surpass 2 million units in H1, leading the runner-up by over 200,000 vehicles, achieving a target completion rate of 40.9%. Its growth was driven by its proprietary brands and NEV segment. However, its joint venture operations with Volkswagen and GM remained weak.
BYD Company Limited (BYD) ranked second with 1.809 million units sold, down 15.7% year-on-year, but maintained its leading position among Chinese brands. The decline was attributed to a high base from 2025 and consumer hesitation during a new technology launch period in Q1. A turning point emerged in Q2, with sales growth turning positive from May. BYD Company Limited (BYD) is expected to see sequential improvement in H2 with the ramp-up of models featuring its mega-fast charging technology and increased overseas production capacity.
Geely Auto briefly surpassed BYD Company Limited (BYD) in Q1 but underperformed in Q2. Its H1 sales were 1.423 million units, up a marginal 0.98%. ZEEKR was its growth pillar, with sales surging 97% to 178,000 units. Geely's own brand and Lynk & Co saw sales decline, but its NEV sales ratio remained a leading 56% among Chinese brands. Its exports soared 158%. The rivalry between Geely and BYD Company Limited (BYD) for the top spot remains a key focus for H2.
Chery Auto led traditional automakers in growth at 7.7%, selling 1.358 million units in H1. Growth was fueled by NEVs and exports, with the latter accounting for 69.5% of total sales, the highest ratio among automakers. However, this came with the steepest decline in domestic sales.
Changan Auto's H1 sales fell 17.4% to 1.19 million units, the largest drop among traditional automakers. While its exports grew 35.1%, this failed to offset the domestic slump. Its proprietary brand sales fell 19.91%, and NEV sales dropped 8.3%. Performance varied among its NEV sub-brands.
GAC Group and Great Wall Motor Company Limited (GWM) achieved slight growth. GAC's sales rose 2.35% to 773,100 units, with energy-saving and NEVs now comprising 62.82% of sales. Its proprietary brand sales grew 35.7%, and exports surged 132%, indicating initial success from restructuring efforts. However, its Japanese joint ventures continued to struggle.
Great Wall Motor Company Limited (GWM) sold 584,000 units in H1, up 2.48%. Haval remained its mainstay, contributing 56% of sales. Its premium Wey brand and the Ora brand (which has shifted focus from pure EVs) saw growth, while the Tank brand and pickup trucks declined. Great Wall Motor Company Limited's (GWM) NEV sales reached 145,000 units, and exports grew 47.4% to 291,000 units.
As of publication, Dongfeng Motor, FAW Group, and BAIC Group had not released H1 data.
New Energy Vehicle Makers: Growth Slows, Targets Loom Large
NEV makers outperformed traditional automakers in H1, with only two experiencing sales declines. However, growth rates have moderated significantly, and progress toward annual targets is generally poor.
Leapmotor led NEV makers in volume, selling 356,500 units, up 60.8%. It was the only NEV maker to exceed 300,000 units. Its June sales hit a record 93,000 units, driven by the new, affordable A10 model. However, it has only achieved 35.7% of its ambitious annual target of 1 million units.
Harmony Smart Mobility ranked second with 242,000 units sold, up 18.6%, but has only reached 24% of its 1-million-unit annual goal. Its growth has slowed across its various sub-brands.
Li Auto delivered 193,000 units in H1, down 5.1%, as its L-series models entered a market fatigue phase and its pure-electric i-series failed to gain traction. New L-series models launching this year are expected to boost sales. Its progress toward its annual growth target is 39.7%.
NIO Inc. (NIO) delivered 191,000 units, a robust 67% increase, benefiting from a growing share of pure-electric vehicles in the NEV market and effective synergy among its three brands. Its progress rate toward its annual target is 41.9%.
ZEEKR posted the highest growth rate among all automakers at 97%, selling 178,000 units. It is also the only automaker to have surpassed 50% of its annual target, with a completion rate of 59.5%. Its expanding product portfolio, led by the 001 shooting brake, has driven its success.
Xiaomi Auto and XPeng Inc. (XPEV) had similar sales volumes, ranking sixth and seventh respectively, but both have only just passed 30% of their annual targets. Xiaomi sold approximately 169,000 units, up 7%, achieving 30.2% of its 550,000-unit goal. XPeng Inc. (XPEV) sold 166,000 units, down 15.83%, the largest decline among NEV makers, also reaching 30.2% of its 550,000-unit target. Both are pinning hopes on new model launches in H2 to boost performance.
Voyah, IM Motors, and Avatr all sold fewer than 100,000 units, placing them at the bottom among NEV brands. Avatr, which saw its sales halve, is currently pursuing a Hong Kong IPO for the second time.
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