China's domestic car demand under pressure, association exec says

China’s domestic car demand has declined more sharply than expected at the start of the year and will likely remain under heavy pressure throughout 2026, an auto association executive said on Wednesday.

“Stabilizing domestic demand this year should be regarded as a very important task for the automotive industry,” said Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers (CAAM).

China’s total vehicle sales dropped 2.1 percent in May from a year earlier, while sales at home slid 20.4 percent year on year, CAAM data showed on Wednesday.

Vehicle exports jumped 68.7 percent on year last month to remain as a key driver of the sector that has increasingly relied on overseas shipments to offset domestic weakness.

Reuters

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