China’s domestic car sales will likely grow 2% in 2027 after a sharp slump in 2026. Sales are set to fall to 18.5 million vehicles in 2026 from 23.7 million in 2025. Cui Dongshu said the recovery will follow fading headwinds, lower costs, and better products for many buyers.
BEIJING, Oct 26 (Reuters) - China's domestic passenger vehicle market is set to stage a modest recovery in 2027 after a steeper-than-expected downturn this year, a senior industry executive said on Monday.
Domestic car sales are set to fall to 18.5 million vehicles in 2026, versus 23.7 million in 2025, before rebounding by a median 2% in 2027, said Cui Dongshu, secretary-general of the China Passenger Car Association.
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Behind the recovery will be the fading of short-term headwind, easing cost pressure and improved product offering, though competition is likely to become increasingly polarised, Cui said.