According to data compiled by the Passenger Car Market Information Joint Conference (CPCA), global auto production continues to rise. In 2025, global production reached 96.38 million vehicles, a 4% increase from 2024's 92.72 million, with China accounting for 36% of global production. Global auto sales for 2025 totaled 96.89 million vehicles, up 6% year-on-year. In June 2026, worldwide auto sales hit 8.16 million units, a 3% increase compared to the same period last year. For the first half of 2026, global sales amounted to 47.86 million vehicles, also up 3% year-on-year.

Due to negative growth in the United States and Chinese markets at the start of the year, the global auto market's growth was not particularly strong in the first half of 2026. In 2025, China held a 35.4% share of the global auto market. At the beginning of 2026, this share dropped to 31.4%, reflecting a significant decline in Chinese auto sales. However, with policy subsidies boosting the commercial vehicle sector, China's market share recovered to 32.2% in June. The low share at the start of the year was an anomaly caused by shrinking entry-level sales, accompanied by weak passenger car performance, stronger commercial vehicle demand, and a surge in exports. There is hope for policies that improve low-income conditions and reduce consumption suppression. As the effects of policy stimulus gradually take hold, China's auto market is expected to strengthen over time.

Global Market Trends and Regional Performance

In the first half of 2026, global auto sales increased by 3%. Among major markets, Chinese sales fell by 4%, while U.S. sales dropped by 3%. In contrast, the Indian auto market saw a 19% surge, Thailand's market grew by 18%, Russia's sales increased by 10%, and Vietnam's market expanded by 31%. Emerging markets are driving strong overall performance. The trend of "Rising East, Declining West" is evident: aside from Toyota, Hyundai-Kia, Suzuki, and Tata, other international brands experienced significant market share declines in 2026. Compared to 2019, Chinese domestic brands have seen a comprehensive rise in global market share. Companies like Geely, BYD, Chery, SAIC, and Changan are performing strongly. The shift toward electrification has also led to the gradual decline of some international automakers.

Monthly Sales Trends

Since 2025, the global auto market has shown overall growth, with each month outperforming the same period of the previous year. In 2026, the market experienced greater volatility. The Chinese New Year fell in February 2026, leading to stable pre-holiday sales and strong global growth in January. However, February saw a sharp decline in Chinese sales due to the holiday, followed by clear improvements from March to June. Global auto sales in 2025 totaled 96.89 million vehicles, up 6% year-on-year. In June 2026, sales reached 8.16 million units, a 3% increase, and the first-half total was 47.86 million vehicles, also up 3%.

After a three-year decline from 2018 to 2020, sales in major countries recovered to 81.35 million units in 2021, a 4% increase, showing good post-pandemic recovery. In 2022, sales fell slightly to 80.18 million units, down 1%, barely above 2020 levels. 2023 saw a significant rebound to 89.01 million vehicles, an 11% increase. By 2024, total sales reached 91.77 million units, surpassing 2019 levels and returning to a reasonable range. In 2025, sales hit a record high of 96.89 million vehicles. Looking ahead to 2026, the global economy is performing well, with hot markets in India and Vietnam, while China and the U.S. remain relatively weak, leading to overall moderate market growth.

China's Dominance and Emerging Market Strength

China's influence on the global auto market is immense. From 2016 to 2018, China accounted for around 30% of global auto sales, dropping to 29% in 2019 while maintaining a dominant position. From 2020 to 2021, its share recovered to 32%, rising to 33.5% in 2022, 33.8% in 2023, and 34.2% in 2024. In 2025, China's share reached 35.4%, but at the start of 2026, it fell to 31.4%, an anomaly attributed to weak entry-level consumption. As policy stimulus effects take hold, China's market is expected to gradually strengthen from the second half of the year onward.

Among developed markets, Europe and the U.S. continue to perform relatively well, as affordability drives car purchases. The Russian market has been gradually recovering since 2023-2024, bringing high sales and profits for Chinese domestic automakers. However, Russia saw a significant decline in 2025, with its share dropping to 1.4% in 2026. Emerging markets like India are performing strongly. The first half of the year shows a differentiated start across countries, with China's market share declining four percentage points in 2026 compared to 2025, from 35.4% to 31.4%.

Country-by-Country Sales Performance

In the first half of 2026, global auto sales grew by 3%. Chinese sales fell by 4%, U.S. sales declined by 3%, while India saw a 19% increase, Thailand grew by 18%, Russia rose by 10%, and Vietnam surged by 31%. Emerging markets are the primary drivers of positive global performance.

Monthly Sales Characteristics by Country

Monthly sales trends across countries generally remain balanced, but seasonal and annual factors cause significant variations. China's market, still in the phase of private car popularization, shows stronger performance at the beginning and end of the year, with a softer mid-year period. India's market, on the other hand, exhibits stronger early-year sales and relatively stable mid-year performance.

International Groups' Global Market Share

Major international automakers have seen a clear decline in market share, while Chinese automakers are generally performing strongly. With the rising status of auto markets in India, Brazil, and Russia, combined with strong performances from Asian automakers like Geely, Chery, and Suzuki, East Asian companies are showing robust production and sales. European automakers, in contrast, are generally underperforming. In the first half of 2026, three Chinese automakers ranked among the world's top 10: BYD rose to 6th place, Geely ranked 7th, and Chery came in 9th.

Regional Market Share Changes for International Groups

The "Rising East, Declining West" trend is clear. Compared to 2019, Chinese domestic brands have comprehensively increased their global market share. Companies like Geely, BYD, Chery, SAIC, Changan, and Great Wall Motors are performing strongly. Aside from Toyota, Hyundai-Kia, Suzuki, and Tata, other international brands saw significant market share declines in 2026. Toyota Group performed relatively well in 2026, maintaining a global share of around 11.1%, consistent with 2019 levels, thanks to strong performance in Europe and North America. Hyundai Motor Group remained stable at 7.6% in 2026, also flat from 2019, with strong showings in North America and other Asian markets, though it continues to struggle in China due to weak product competitiveness. Suzuki performed well, driven by strong sales in India and Japan. Honda Group saw a 2.3 percentage point decline from 2019, with weak performance in China. European automakers, including Renault-Nissan, Stellantis, and Volkswagen, generally fared poorly in 2026, with market shares dropping about three percentage points from 2019, representing a loss of nearly 3 million vehicles. These European companies face significant pressure in the Chinese market and cannot afford to retreat, requiring a second wave of innovation. The success of electrification transitions is driving comprehensive growth for second-tier Chinese automakers.