Passenger Vehicle Market Accelerates Polarization in April

[Market Dynamics] In April 2026, retail sales of passenger vehicles reached 1.384 million units, down 21.5% year-over-year, while the new energy vehicle (NEV) penetration rate surpassed 60% for the first time.

Core Trends: Domestic Brands Approach 70% Market Share as Joint Ventures Continue to Shrink

Domestic brands sold 970,000 units in April, capturing 69.6% of the domestic market share; mainstream joint-venture brands sold only 280,000 units, a 37% year-over-year decline, with German, Japanese, and American brand shares falling to 13.3%, 10.9%, and 4.5%, respectively.

Key Metrics: NEVs and Exports Emerge as Structural Bright Spots

The domestic retail penetration rate of new energy vehicles hit a record high of 61.4%; boosted by soaring exports, the year-over-year decline in wholesale volume narrowed by 17.5 percentage points compared to retail sales.

Strategic Underpinnings: A Structural Inflection Point Amid Overall Market Pressure

Despite overall market weakness, domestic brand production grew by 3% year-over-year, while output from joint-venture and premium brands each declined by more than 10%, highlighting an accelerating shift in industry focus toward new energy vehicles and domestic automakers.