China sells fewer vehicles domestically, accelerates exports

Sales of new vehicles in China fell 25% in July (the seventh consecutive month of decline this year) and this has worried the China Association of Automobile Manufacturers (ACFA), equivalent to Anfavea. It is no longer just an internal issue, as it affects competition on a global scale, as recalled by the Automotive News website. It puts the second most populous country in the world (only behind India) on the path to registering for the first time a double-digit annual retraction in the domestic sale of vehicles.

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car It is still too early to predict what will happen in the coming years, after two decades in which the Asian giant surprised with the impressive growth of its automobile industry. According to Fu Bingfeng, from ACFA, this pace exceeded the absorption capacity of buyers. It is estimated for this year a total of 500 models, from 130 brands, with profit margins that are too tight. There is an expected drop in domestic sales of 14% at the end of this year, to less than 21 million vehicles.

A recent 5 percent tax on electric vehicles and plug-in hybrids, rather than subsidies without much transparency, led to a 6 percent drop in sales last July alone. The alternative was to export, with key government help, record volumes: 5.35 million vehicles as of last month, a staggering 73 percent increase that has intensified competition far beyond China’s borders.

In Brazil alone, 16 Chinese brands now operate with local production announced by at least four of them, not counting GWM and BYD. However, the president of Fenabrave, Arcélio dos Santos Jr., recalled last week that “my concern is with who stays and who leaves”. He recalls that the market does not grow at the same rate as the brands that land here and those who invested in new dealerships may suffer losses. And I add: also the buyers…

Non-Chinese manufacturers, some of whom have been in Brazil for decades, have announced R$ 180 billion in investments over the next five years.

Consultancy points to an advance in SUVs in 16 years

A study by Carcon Automotive, released by Julian Semple, highlights marked changes in the segmentation of light vehicles in Brazil. A survey carried out between the beginning of 2010 and July of this year, that is, a little more than a decade and a half.

Evolutions were concentrated in SUVs, sports vehicles and crossovers , which the market usually calls SUVs. In January 2010, these occupied only 6.2% of share, and the leaders were EcoSport and Tucson. In July 2026, they started to occupy almost half of the share of sales, with emphasis on the Tera (crossover) and T-Cross (SUV).

Another segment that grew was small and medium-sized pickup trucks. These evolved from 11.2% in 2010, especially Strada and Saveiro, to 17.2% in 2026 with the dominance of the Italian brand that also has Toro. On the other hand, according to the consultant, hatches such as Gol and Palio, which dominated almost half of the market in 2010, had their share reduced to a quarter of sales this year. The leader is the Polo, followed by Argo and Onix.

The biggest losses in segmentation were sedans, minivans and station wagons. The latter already in 2010 pointed to a strong decline of Palio Weekend and Spacefox until their complete disappearance due to the growing sales of SUVs. Almost the same happened with minivans, 16 years ago led by Fit and Meriva. Only Spin remained.

In the case of sedans, in 2010 their share was 23.8% and the leaders Corsa Sedan and Siena. In 2026, it fell to only 6.3%, with a predominance of sales of Onix Plus, HB20S and Corolla.