On August 14, Cui Dongshu, secretary-general of the China Passenger Car Association, said China’s auto market weakened in July 2026 because of a rebound in oil prices, softer macro conditions, the seasonal low, earlier demand pull-forward and policy changes. He said geopolitical tensions disrupted traffic through the Strait of Hormuz, pushing international oil prices higher and lifting China’s gasoline prices by a cumulative 1,575 yuan per ton in 2026, which sharply raised vehicle use costs and hurt passenger-car demand, while having little impact on commercial vehicles, according to Jiemian News. He added that July CPI and PPI eased month on month, the PMI weakened, household income and consumption expectations were cautious, demand for big-ticket durable goods was weak, and hot-weather seasonality plus June’s half-year sales push further damped showroom traffic and orders.

The China Passenger Car Association said light commercial vehicle sales in 2026 are expected to reach about 2.96 million units, up 2.0% from 2.903 million in 2025. It said the market is entering a new stage dominated by replacement demand, with growth driven mainly by deeper new-energy adoption and overseas expansion.