Domestic Auto Sales Drop 21.1% in H1 2026 Despite Over 500 New Models Amid Severe Homogenization

In the first half of 2026, domestic automobile sales in China totaled 9.921 million units, down 21.1% year-on-year. During the same period, over 500 new vehicle models were launched, yet this failed to effectively boost market sales. Fu Bingfeng, Vice Chairman and Secretary-General of the China Association of Automobile Manufacturers, stated at the China Automotive Forum held on July 22, 2026, that there are more than 130 domestic automotive brands, with most companies adopting a broad and comprehensive product portfolio strategy, exacerbating product homogenization. He emphasized that automakers must shift their development approach, focusing on precise market positioning and differentiated competition to achieve sustainable growth.