Domestic vehicle sales fall in first quarter By Li Fusheng | China Daily | Updated: 2026-04-13 09:29 China's passenger vehicle market came under pressure in the first quarter of 2026, while exports maintained rapid growth, providing support for the industry's overall performance. In March, retail sales reached 1.64 million units, decreasing 15 percent year-on-year but rising 59.4 percent month-on-month, according to data from the China Passenger Car Association. They brought retail sales to 4.22 million units in the first quarter, down 17.4 percent year-on-year. Cui Dongshu, secretary-general of the China Passenger Car Association, said the overall market performance was slightly better than expected. He said the number of newly launched models remained relatively low, with only 18 new passenger vehicle models introduced during the period. The Spring Festival holiday, which was later than previous years, was also a contributing factor. Cui called for sustained policy support, such as purchase tax exemptions, to stabilize market growth and tap domestic demand, particularly in expanding vehicle ownership. Some of the top players performed well though. SAIC Motor delivered 1 million vehicles in the first quarter, up 3 percent year-on-year. Of them, its indigenous brands combined delivered 657,000 units, up 9.3 percent year-on-year. Leapmotor saw its sales total 110,000 units from January to March, up 26 percent year-on-year. Nio delivered over 83,000 units, surging 98.3 percent from the same period of 2025. Cui was optimistic about the whole-year performance. "The auto market is expected to enter a phase of gradual recovery in the second quarter, though the pace may be moderate," he said. "The market is likely to stabilize in the third quarter, with steady growth expected in the second half of the year." Despite softer domestic demand, China's auto exports continued to register momentum. Data showed that China exported 1.55 million vehicles in