Luxury Import Sales Plunge as Domestic Brands Capture 71.8% Market Share

In the first half of 2026, China's imported vehicle market remained sluggish. Data shows that nationwide auto imports totaled 200,000 units, down 11% year-over-year, while retail sales at dealerships reached 190,000 units, a 29% decline compared to the same period last year—marking a sharp 39% drop in June alone. Since peaking at 1.43 million units in 2014, the imported car market has experienced continuous declines, with annual import volumes falling from 930,000 units in 2021 to just 480,000 units in 2025—a nearly 50% reduction over five years. Sales of ultra-luxury brands have plummeted across the board: Bentley, Rolls-Royce, and Ferrari all saw year-over-year declines of around 30% in the first half of 2026; Maserati’s sales dropped by 48%, while McLaren’s plunged by a staggering 90%. Among mainstream imported luxury brands, Lexus led the segment with sales of 70,500 units, followed by Mercedes-Benz and BMW in second and third place, respectively. However, these brands are generally grappling with excessive inventory at dealerships, making price discounts and promotional campaigns a common practice. Japanese brands emerged as the only segment posting growth in the imported vehicle market, with imports exceeding 103,000 units in the first half of the year—significantly outpacing German and American brands. The primary driver behind the decline in imported luxury vehicles is the comprehensive substitution by domestically produced cars. In 2021, joint-venture and imported vehicles together held a 61.6% share of the passenger car market; by the first half of 2026, domestic Chinese brands had captured 71.8% of the market. Consumer attitudes have also shifted: once seen as status symbols, imported cars in the RMB 300,000–400,000 price range are now being replaced by domestically produced new energy vehicles offering superior configurations and higher levels of intelligent technology.