China's passenger vehicle market remained under pressure in May 2026, as weaker domestic demand contrasted sharply with accelerating overseas sales. Passenger vehicle sales reached 2.25 million units, down 4.3% year on year but up 5.8% from April, while production totaled 2.24 million units. From January to May 2026, cumulative passenger vehicle sales and production fell 6.4% and 6.9% year on year, respectively.
Exports continued to provide the market's strongest growth momentum. China exported a record 809,000 passenger vehicles in May, representing a 72.3% year-on-year increase. Chery and BYD led the OEM export rankings, each shipping more than 150,000 vehicles, while Leapmotor recorded particularly rapid export growth.
The transition toward electrified vehicles also accelerated. New energy vehicle sales rose 11.8% year on year to 1.374 million units, lifting NEV market penetration to an all-time monthly high of 61%. By contrast, internal combustion engine vehicle sales declined 24.5%. SUVs outperformed the broader market, with sales increasing 11.6%, while sedan sales dropped 23.5%.
This report provides a detailed analysis of China's passenger vehicle sales, production, exports, NEV penetration, powertrain mix, body-type performance and automaker rankings in May 2026.
