Kyle Chan(@kyleichan):China’s total domestic auto sales haven’t changed much over the past decade. What changed was a massive shift from ICE to EVs & hybrids since 2020. But this year we’re seeing sharp drops in both, bringing down total car sales significantly. NEV sales got hit with the phasing out of tax incentives. A similar phase-out of tax incentives plus tightening emission standards caused ICE sales to drop back in 2018 and 2019. And of course there’s the sluggish economy dragging on both today.

2026.10.11 11:04

China’s total domestic auto sales haven’t changed much over the past decade. What changed was a massive shift from ICE to EVs & hybrids since 2020. But this year we’re seeing sharp drops in both, bringing down total car sales significantly. NEV sales got hit with the phasing out of tax incentives. A similar phase-out of tax incentives plus tightening emission standards caused ICE sales to drop back in 2018 and 2019. And of course there’s the sluggish economy dragging on both today.