China’s total vehicle sales fell 5.1% year on year in August 2026 after declining 0.3% in July, according to the China Association of Automobile Manufacturers (CAAM), while NEV sales rose 17.8%. Separately, China Passenger Car Association (CPCA) data showed nationwide passenger-car retail sales of 1.541 million units, down 23.6% year on year but up 5.5% from July, with NEVs occupying all 10 best-selling positions. NEV retail sales reached 1.005 million units, down 10.1% year on year but representing a record 65.2% penetration, while gasoline-car retail sales fell 40% to 540,000 units. The CPCA attributed the gasoline decline partly to sustained fuel-price increases and expects September’s market recovery to continue month on month. For the first eight months, CAAM reported total vehicle sales down 3.8% and NEV sales up 10.7%, while CPCA recorded passenger-car retail sales down 20.8% to 11.716 million units.