On Monday, data indicated that China’s annual car sales fell 8.5% in November, a second straight monthly dip and the worst drop in 10 months, amid a decline in vehicle purchases before government incentives expire.
After October’s 0.8% drop, China Passenger Car Association figures showed 2.24 million car sales last month.

Cui Dongshu, the industry body’s secretary-general, called the deeper decline “abnormal,” citing 17-year-old conditions. Sales have typically been high in the year’s final two months.

“A similar abnormality occurred in 2008 when consumption was under pressure,” he said.
A record 58.9% of automobile sales were electric or plug-in hybrids. Official data showed 11.2 million subsidized auto trade-ins for EVs and PHEVs in the first 11 months.

Overall sales fell last month due to a large drop in gasoline car sales and a high base last year, according to Cui, who expects full-year sales to climb 5%.

CMBI analysts predicted flat car sales in 2026 as competition in China increases with “a possible all-time high number of new models”.

Domestic EV leader BYD (002594.SZ) completed November with lower sales than the year before, competing with cheaper rivals Geely (0175.HK) and Leapmotor (9863.HK), whose sales kept rising.