Cui Dongshu: Imported cars in the first five months of the year totaled 160,000 units, a year-on-year decrease of 11%. In May, imports totaled 38,000 units, a 19% decrease.

Cui Dongshu stated that in May 2026, 38,000 imported cars were imported, a decrease of 19%. However, due to the low base in January 2025, despite disruptions in transportation caused by the US-Iran war, the overall decrease in imported cars was small. From January to May 2026, 160,000 imported cars were imported, a decrease of 11% compared to the same period. With the rise of domestic cars and the acceleration of international brands localization, the import of cars has been persistently low in recent years, with imported cars showing negative growth for 3 years. If fluctuations are smoothed out, it will be 8 consecutive years of negative growth. The pressure on the decline of imported cars in May is still significant. The top 10 countries with the highest imports in May 2026 were: Japan 19,018 units, Germany 9,935 units, Slovakia 2,889 units, the United States 2,770 units, the United Kingdom 2,063 units, Austria 439 units, Mexico 320 units, China 137 units, South Africa 112 units, and Poland 87 units. The top five countries with the largest increase compared to the same period were: Mexico +283 units, China +136 units, Austria +120 units, South Africa +112 units, and Malaysia +18 units. The top 10 countries with the highest imports from January to May 2026 were: Japan 85,007 units, Germany 35,039 units, the United States 14,373 units, the United Kingdom 9,429 units, Slovakia 9,398 units, Mexico 2,327 units, Austria 1,966 units, Thailand 1,699 units, Sweden 584 units, and South Korea 358 units. The top five countries with the largest increase compared to the same period were: Japan +14,964 units, Thailand +1,485 units, Austria +657 units, Mexico +445 units, and China +315 units. Against the background of the continuous decline in imported cars in recent years, the luxury market this year has shown differentiated trends. Lexus sales remained relatively stable, maintaining the top position in imported luxury cars. Some ultra-luxury brands showed abnormal fluctuations, indicating signs of collapse, and the industry is under significant operating pressure. Overall, the demand for domestic and imported luxury cars in the market is generally weak, with greater pressure in traditional affluent areas such as Shanghai, Beijing, Suzhou, Hangzhou, and Chengdu. Meanwhile, areas in western China like Kashi, Karamay, Ali, and Aksu, where oil production is strong, have shown relatively strong demand. 1. Overall trend of imported cars in China The growth characteristics of imported cars After reaching a peak of 1.43 million imported cars in 2014, imports of cars declined, with a slight stabilization and improvement in import growth in 2016-2017. However, since 2018, imports have been continuously declining. In 2024, the scale of imports sharply reduced to only 700,000 cars, a decrease of 12% compared to the previous year. In 2025, the import of cars decreased by 32% to 480,000 cars, indicating a continued shrinkage in the import of cars. From January to May 2026, 160,000 cars were imported, a decrease of 11% compared to the same period. The temporary slowdown in the decline of imported car imports in 2026 was due to a low base in January 2025. The structure characteristics of the import of whole vehicles Since 2019, all types of imported car models have shown a comprehensive decline. Traditional trucks have had a rapid decline. From January to May 2026, the import of passenger cars was lower than demand, indicating continuous destocking. This year, passenger cars account for over 99% of the import structure, with the inclusion of pickup trucks, passenger cars account for an even higher proportion. Passenger cars accounted for 50% of imports from January to May 2026; four-wheel drive SUV imports accounted for 22%; and unnamed motor vehicles accounted for 1% of the total. The performance of imported commercial vehicles was average in 2026, especially in the slight decline of light trucks imports, and weak recent imports of pickup trucks. The structure characteristics of the import of new energy vehicles From 2021 to 2023, the import of new energy passenger cars continued to grow. However, in 2025, there was a sharp decline. From January to May 2026, imports of pure electric passenger cars decreased by 42%, and plug-in hybrids decreased by 55%, showing a weak performance in the import of new energy passenger cars. The market for traditional fuel-imported cars witnessed a significant rebound, with hybrid imports also rising. The proportion of gasoline trucks decreased, showing a correlation with demand for haulage vehicles. The performance of high-end gasoline pickup truck imports in 2026 was poor. While the domestic market for new energy pickup trucks has shown relatively strong performance, imported pure electric pickup trucks have shown relatively weak performance. In 2024, the proportion of new energy passenger cars imported reached 3%, but by January to May 2026, the proportion had dropped to 2%, with a significant decrease in pure electric import, indicating that fuel passenger cars still dominate. Diesel trucks still make up a significant proportion, with a major decline in imports of pure electric trucks. The displacement structure characteristics of imported passenger cars Imported passenger car models are predominantly concentrated in gasoline vehicles with a displacement of under 2.0 liters. In the recent years, the decline in large displacement vehicles of 3-4 liters has been slower. This year, the 1.5-2.0 liter displacement segment has shown relatively good performance. Originally, imported passenger car models were concentrated in gasoline vehicles with a displacement of under 2.0 liters. From January to May 2026, they accounted for 67% of the total import volume of cars, an increase of 7 percentage points compared to the previous year. The decline in high-end large displacement models is slower. Over the recent years, sales of large displacement vehicles of 3-4 liters have shown a slow decline, with an increase in their proportion. The competition pressure is lower for imported vehicles with displacements above 3 liters because the domestic market is mainly focused on vehicles with displacements under 2.0 liters. 2. Market structure of the automobile import market Characteristics of import by country The core countries for the import of passenger cars to China are still Japan, Germany, Slovakia, the United States, and the United Kingdom. Recently, Japan and Germany had relatively stable import performance, while Slovakia suffered significant import losses. Trend in whole vehicle imports by month The pressure on the decline in May imports remains significant. In May 2026, the top 10 countries for imports were Japan 19,018 units, Germany 9,935 units, Slovakia 2,889 units, the United States 2,770 units, the United Kingdom 2,063 units, Austria 439 units, Mexico 320 units, China 137 units, South Africa 112 units, and Poland 87 units. The top five countries with the largest increase compared to the same period were Mexico +283 units, China +136 units, Austria +120 units, South Africa +112 units, and Malaysia +18 units. From January to May 2026, the top 10 countries for imports were Japan 85,007 units, Germany 35,039 units, the United States 14,373 units, the United Kingdom 9,429 units, Slovakia 9,398 units, Mexico 2,327 units, Austria 1,966 units, Thailand 1,699 units, Sweden 584 units, and South Korea 358 units. The top five countries with the largest increase compared to the same period were Japan +14,964 units, Thailand +1,485 units, Austria +657 units, Mexico +445 units, and China +315 units. Characteristics of countries for the import of new energy vehicles In 2025, domestic car competitiveness was strong, leading to a 67% decline in imports of new energy vehicles from main countries. In 2026, the pressure on the import of new energy passenger cars further increased, with poor performance from imported cars from Germany and almost no sales of new energy cars imported from the United States. 3. Market sales pattern of the automobile market Total sales of imported cars The trend of imported cars in January-May was slightly lower than the previous year, with a small decline compared to the trend of previous years. The performance of imported gasoline cars at the beginning of the year was relatively good due to strong independent Chinese car companies, but overall, the sales of imported cars have been poorer compared to the trends in the domestic luxury car market. Sales of imported cars fluctuated between 800,000-900,000 units from 2022 to 2024, with increasing market pressure. In 2025, car compulsory insurance data amounted to 540,000 units, a 33% decrease compared to the previous year. Driven by low base figures in early 2025, retail sales of imported cars were 170,000 units from January to May, a 27% decrease, with a sharp drop to 29,000 units in May, a 38% decrease. The future pressure remains high. 4. Characteristics of imported car brands In recent years, ultra-luxury cars have shown continuous growth, but since 2023, there has been a significant decline, accelerating in 2024, and remaining severe in the decline from January to May 2026. The trend of ultra-luxury cars has been highly volatile, with Maserati showing strong overall performance in 2025 but a decline in 2026. Bentley and Rolls-Royce have shown low performance, but are making a comeback as leaders in the ultra-luxury market. Ferrari has shown relatively solid performance. The overall trend for ultra-luxury cars is weak, reflecting a temporary slowdown in the purchasing power of ultra-high-end consumer groups. The abnormal sales of ultra-luxury cars resulting from recent sell-offs have led to a reasonable market price correction. Currently, demand for imported cars relies mainly on luxury car demand, while non-luxury imported cars have significantly declined. The proportion of mainstream imported luxury cars in imported cars has grown substantially. Joint venture brand imports have rapidly declined, with some European brands like Volkswagen showing drastic declines in imported cars. In 2025, Lexus imported insurance retail data reached 184,000 units, a 22% increase compared to the previous year. Lexus sales in 2025 were higher than in 2022, maintaining a level of 180,000 units from 2022 to 2024. In January-May 2026, Lexus sales continued to be at a relatively high level, showing strong performance over the past four years. Porsche and Land Rover also showed relatively good performance. 5. Characteristics of regional changes in imported ultra-luxury cars Overall, demand for ultra-luxury cars in the imported car market is relatively weak, with Tianjin maintaining the top spot in ultra-luxury cars. Recently, Beijing has seen a significant decline, while Wuxi has performed relatively well. In traditional affluent areas like Shanghai, Beijing, Chengdu, Hangzhou, Shenzhen, Guangzhou, and Ningbo, the pressure on the imported ultra-luxury car market is significant. The influence of new energy cars on ultra-luxury cars is apparent, with the shrinking market for ultra-luxury cars, indicating overall weak demand due to price pressure. 6. Characteristics of regional changes in luxury cars Overall, demand for both domestic and imported luxury cars in the market is relatively weak. The pressure in traditional affluent areas like Shanghai, Beijing, Suzhou, Hangzhou, and Chengdu is significant. In 2026, regions like Kashi, Karamay, Ali, and Aksu in western China, where oil production is strong, have shown relatively strong demand.