CPCA secretary-general Cui Dongshu said August 2026 auto retail sales rose 5.5%
MoM, the result of multiple factors including elevated oil prices, weak macro
sentiment, rising policy expectations and the Chengdu auto show. Geopolitical
tensions around the Strait of Hormuz have kept international oil prices high;
domestic gasoline prices have been raised by more than 1,720 yuan/ton YTD,
including roughly 180 yuan/ton since late July, materially raising fuel-vehicle
ownership costs and sharply compressing demand for gasoline passenger cars.
After the new national EV safety standard took effect, compliant models rolled
out in concentrated waves, raising technical thresholds and shifting the
industry from price competition toward value competition. Together with the July
Politburo signal of stronger fiscal support and ongoing measures to boost
domestic demand and consumption, these factors provide bottom support. Cui said
the current market downcycle is a phase of structural, temporary volatility and
it is premature to declare a trend deterioration.
