China’s Gasoline Car Sales Plunge as EV Exports Accelerate

CAAM data show domestic gasoline-powered passenger-car sales fell to 497,000 units in May, a 41.8 % YoY drop and 357,000 fewer than a year earlier. The segment also slipped 3.5 % from April. Cumulative sales for the first five months totalled 3.2 million, down 28 % YoY.

China's gasoline car sales plunge 41.8% in May as combustion era fades

NEV sales rose to 1.049 million units in May, up 14.8 % from April, though still 4.1 % below May 2025. Passenger-only NEVs reached 947,000 units, a 15.6 % MoM gain but an 8.1 % YoY decline. NEVs now fill the entire top-10 best-selling passenger-car list for May, eliminating gasoline models.

China's gasoline car sales plunge 41.8% in May as combustion era fades

Passenger-car exports jumped 73 % YoY to about 809,000 units in May (PBS). CnEVPost reports 483,000 fuel-car and 446,000 NEV exports, the latter up 110 % YoY. BYD alone shipped over 160,000 vehicles, an 80 % increase, targeting 1.5 million overseas sales this year. Export growth offsets the domestic sales slump.

China's gasoline car sales plunge 41.8% in May as combustion era fades

CAAM’s data underpin the declines. CPCA secretary-general Cui Dongshu warned that high fuel prices have raised gasoline-car ownership costs, dampening demand. UBS analyst Paul Gong linked higher oil prices to stronger EV interest. S&P analyst Claire Yuan expects passenger-car exports to grow 30 %–50 % YoY through 2026. Analysts cite high gasoline and diesel prices, reduced EV incentives, and a domestic price war as drivers of the shift toward electrified models and exports.

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CnEVPost’s combined export total of 929,000 vehicles (483,000 fuel-car + 446,000 NEV) exceeds PBS’s reported 809,000 units for May. NEV export figures also differ (446,000 vs. 435,000). The gap reflects divergent data scopes and highlights the need for consistent reporting.

China's gasoline car sales plunge 41.8% in May as combustion era fades

The steep drop in gasoline-car sales underscores a structural shift toward electrification. Export growth provides a core engine for Chinese automakers to offset domestic pressure and reinforces China’s ambition to dominate the global EV market.

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UBS projects total passenger-car exports to rise about 40 % in 2026, with EV exports up roughly 80 %. S&P forecasts a 30 %–50 % annual increase. Observers anticipate a domestic rebound in the second half of the year as automakers launch new lineups.

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• “The high oil price certainly has translated into further higher interest on the EV,” — Paul Gong, Head of UBS China Automotive Industry Research

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• “Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), said that amid the shock of high fuel prices, the cost of owning a gasoline vehicle has continued to climb, significantly dampening purchase intentions.” — Cui Dongshu, Secretary-General, China Passenger Car Association

China's gasoline car sales plunge 41.8% in May as combustion era fades

• “influence as Carney visits Beijing Claire Yuan, an auto analyst at S&P Global Ratings, expects China's passenger car exports to maintain strong momentum in 2026 and forecasts a year-on-year growth of 30% to 50%.” — Claire Yuan, Auto Analyst, S&P Global Ratings

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