---
title: "China's Car Sales Market Sees Dramatic Decline in Autumn"
url: https://noti.group/china-s-car-sales-market-sees-dramatic-decline-in-autumn/
language: en
publisher: "Noti Group"
section: "Business"
published: 2026-10-28T13:17:20.000Z
updated: 2026-10-28T14:24:02.199Z
id: 8ac72c5d-e451-47e3-8758-75ce339d8d36
source: "CNBC https://www.cnbc.com/2026/10/28/china-car-exports.html"
attribution: "Link to https://noti.group/china-s-car-sales-market-sees-dramatic-decline-in-autumn/ and name Noti Group when you quote or summarize this story."
---

# China's Car Sales Market Sees Dramatic Decline in Autumn

Car sales in China are down 21.7% in the first nine months of this year compared to the same period last year.

China's car sales market is facing an unprecedented slump, with dealerships in Beijing reporting a drastic decline in purchases during the traditional peak season of autumn. The usual surge of customers has been absent this year, leaving many showrooms empty or closed.

Car salesman Li Ke, who has spent 26 years working at a dealership on the outskirts of Beijing, described the current situation as the slowest he's ever seen. Typically, the "golden September and silver October" period is the busiest time for car sales in China, but this year it has been eerily quiet.

According to Li Ke, in previous years customers would flood into showrooms, leading to a steady stream of deals being signed every day. However, in recent weeks he has seen only two or three deals per week, a dramatic drop from the usual pace. This downturn is not limited to his dealership alone.

The reasons behind this decline are multifaceted, with many potential buyers hesitant due to an unstable job market and falling property prices. Additionally, government incentives such as cash-for-clunkers subsidies and tax breaks for electric vehicles have been scaled back, further eroding consumer confidence in the car sales market.

China's domestic passenger car market continues to struggle, with sales plummeting by 21.7% in the first nine months of this year compared to the same period last year, according to data from the China Passenger Car Association.

Electric vehicles, once a growth driver, are also feeling the pinch, with new-energy vehicle sales declining by 12.8% between January and September. This drop is likely due to a combination of factors, including changing consumer preferences and increased competition in the market.

As consumers become increasingly price-sensitive, they are taking a more measured approach to car purchases, weighing the pros and cons of each model before making a decision. "Customers are watching every penny," said Li, and are looking for value that will last over the long term.

The intense competition among Chinese carmakers has led to aggressive pricing strategies, which have contributed to the sector's woes. Analysts warn that Beijing is growing increasingly concerned about the potential impact of coordinated trade barriers from major trading partners like the US and Europe on its massive exports.

In response to these challenges, many Chinese automakers are looking to expand their presence in international markets, where they hope to find more favorable business conditions. However, this strategy may be complicated by ongoing trade tensions between China and key export destinations.

China's industrial profits have shown a mixed trend this year, with a 15.5% increase for the first nine months compared to the same period in 2025. However, September saw a decline in growth, which may be a cause for concern.

The auto manufacturing industry has been particularly affected by these trends, with profits shrinking by 22.8% from January to September compared to last year. This downturn is likely due to the prevailing economic conditions and trade tensions affecting exports.

To stay afloat, car dealerships like Li's are having to make tough financial decisions. By moving to less expensive locations, they can preserve cash and reduce costs, but this may also limit their ability to attract customers in the long run.

---
Source: [CNBC](https://www.cnbc.com/2026/10/28/china-car-exports.html)  
Published by Noti Group: https://noti.group/china-s-car-sales-market-sees-dramatic-decline-in-autumn/