Retail passenger car sales in China fell to 1.51 million units in May, with new-energy vehicles dominating amid high oil prices.
China’s retail passenger car sales dropped 22.1% year-on-year in May to 1.51 million units, reflecting weak domestic demand and elevated oil prices. The decline underscores a structural shift in the world’s largest auto market as consumers pivot away from petrol-powered vehicles.
New-energy vehicles (NEVs) accounted for a record 62.9% of sales, though their volumes fell 7.5% to 950,000 units. Exports of NEVs surged, signaling Chinese manufacturers are leveraging the downturn to bolster overseas competitiveness. Month-on-month sales rose 9.2% from April, supported by promotions.
The trend suggests long-term implications for gasoline demand, with forecasters monitoring China’s accelerating transition to EVs. Tighter financing and cautious consumer spending may limit a near-term rebound.