Cui Dongshu: In May 2026, the domestic passenger car market in China will see overall pressure on total sales, with a month-on-month increase in demand, and the structure showing extreme differentiation.

Cui Dongshu wrote that in May, the national retail sales of passenger vehicles reached 1.51 million units, a year-on-year decrease of 22% but an increase of 10% compared to the previous month. So far this year, a total of 7.11 million vehicles have been sold, a decrease of 19% compared to the same period last year. In May 2026, the domestic passenger vehicle market showed a trend of total pressure, month-on-month strength, and extreme structural differentiation, with no substantial recovery overall. The slight warming this month is mainly due to the effectiveness of the "anti-cannibalization" strategy in the automotive market, the stability of promotional efforts by car manufacturers, the fading of consumer price-watching expectations, the boost from the popularity of the Beijing auto show, and the release of some pent-up demand for car purchases, resulting in a temporary rebound in end-user demand.