The: The weakening of the auto market in July 2026 is due to a combination of multiple factors, including the rebound of oil prices, macroeconomic weakening, seasonal off-peak periods, earlier demand being overdrawn, and policy shifts.

According to the China Passenger Car Association, the weakening of the auto market in July 2026 is due to a combination of multiple factors including a rebound in oil prices, macroeconomic slowdown, seasonal off-peak periods, prior demand overstretching, and policy shifts. Geopolitical conflicts have caused disruptions in the navigation of the Strait of Hormuz, leading to fluctuations in international oil prices, resulting in a cumulative increase of 1,575 yuan per ton for domestic gasoline prices in 2026, significantly raising vehicle operating costs and causing a sharp decline in fuel passenger vehicle consumption; however, the impact on commercial vehicles is minimal. At the same time, both the July CPI and PPI fell on a month-on-month basis, and the PMI showed a downturn. Residents income and consumption expectations remain cautious, with low willingness to purchase large durable goods, leading to a sustained weakening in housing and travel consumption, which is dragging down terminal demand in the auto market. Additionally, July's high temperatures in the off-peak season have suppressed offline store traffic, while the market demand was overstretched ahead of the June sales push, causing a concurrent decline in terminal orders and customer flow. Moreover, the official implementation of new national safety standards for new energy vehicles has raised industry technical barriers, creating short-term disturbances in the market for low-end models. However, the Politburo meeting in July made clear fiscal support measures and policies to boost domestic demand and promote consumption, providing foundational support for the auto market. This round of market downturn is characterized as a phase structural fluctuation rather than a trend deterioration in the industry.