China's total vehicle sales declined 5.1% year-on-year in August 2026, extending a 0.3% drop in July, according to the China Association of Automobile Manufacturers (CAAM). New energy vehicle (NEV) sales increased 17.8% from a year earlier during the month. In the first eight months, overall vehicle sales fell 3.8%, while NEV sales grew 10.7%. The figures follow a record 34.4 million vehicle sales last year, when the market expanded 9.4% after growing 4.5% in 2024; NEV sales rose 28.2%.