China’s domestic car sales expected to rise 2% in 2027

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ExpandChina’s domestic passenger vehicle market is set to stage a modest recovery in 2027. Picture: Reuters/Aly Song China’s domestic passenger vehicle market is set to stage a modest recovery in 2027 after a steeper-than-expected downturn this year, a senior industry executive said on Monday.

Domestic car sales are set to fall to 18.5-million vehicles in 2026, versus 23.7-million in 2025, before rebounding by a median 2% in 2027, said Cui Dongshu, secretary-general of the China Passenger Car Association.

Behind the recovery will be the fading of short-term headwind, easing cost pressure and improved product offering, though competition is likely to become increasingly polarised, Cui said.

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