Cui Dongshu: The month-on-month increase in the car market in August was only due to structural restoration, electrification iterations, and overseas exports, which have become the core support for the industry's long-term growth

The Zhitong Finance App learned that on September 14, Cui Dongshu published an article stating that the current competitive characteristics of the domestic car market stock are prominent, export demand has skyrocketed, and the segmentation within the industry continues to intensify. The new energy market bid farewell to global growth, showing a polarized trend of “the explosion of high-end electric vehicles and pressure on micro electric vehicle models”. The county and rural markets and entry-level models have declined too much. At the same time, the “new car effect” has been shortened, and its driving effect on the market has been greatly reduced. Pressure on the channel side continues to be prominent, the pace of passive inventory removal in the industry is speeding up, and dealers are generally losing money and operating risks are rising. Overall, the month-on-month strengthening of the car market in August was only a structural restoration. Iteration of electrification and overseas exports have become the core support for the long-term growth of the industry.

Passenger car retail sales fell 23% and wholesale fell 5% in August 2026. The retail growth rate was much weaker than the wholesale growth rate, forming a pattern of internal cooling and external heat.

Looking at the structure, the wholesale side of large, high-end A0, B, and C class SUVs showed outstanding growth, while demand for traditional cars and micro and small MPVs weakened, reflecting a shift in consumption towards medium and large SUVs, divergence in wholesale and retail trends, and increased pressure on channel inventory.

Entry-level consumption has been hit hard. Due to the impact of high fuel prices and the suspension of subsidies, retail sales of A-class cars and A00-class cars were both lower in August. A0 class cars and high-end models became the main retail force in August. The high-end performance of SUVs was strong, and sales of mainly A0 class cars rebounded.

I. Economical passenger car market trends

1. A00 class car market performance

Sales trends in the domestic mini car market from 2025 to 2026 have clearly reshuffled the market pattern. BYD Seagull is at the top of the list, with cumulative sales volume of 227,300 units in 2026, but the year-on-year decline is 38%. Despite the overall decline, it is still the mainstay of mini car sales. The once popular Hongguang MINI shrank sharply, falling 66% in 2026, and the market popularity declined sharply. The Pentium Pony and Zero Run T03 are ranked third and fourth based on exports. The Triumph Moon and Ruilan Blue Balloons have achieved rapid growth, and some emerging models have seized market share with product positioning.

Most traditional mini cars showed negative growth of more than two digits, while Panda Mini and Baojunyue also declined significantly. Looking at the curve, after many models surged in 2025, sales generally experienced a dive in sales in early 2026. Only a few export models achieved contrarian growth, reflecting increased competition in the mini electric vehicle market, increasing consumer requirements for battery life, safety, and quality, raising the threshold for low cost cars, and shrinking consumption.

2. Market trends of the main A0 class sedan models

The sales trend of A0 class car brands from 2025 to 2026, and the overall market segment showed a growing trend. Geely Star is willing to continue to lead the way. The cumulative sales volume in 2026 was 365,500 units, an increase of 23% over the previous year. The overall sales curve is rising at a high level, ranking first in the list. BYD Dolphins followed suit, showing steady performance. The MG 4 Series ushered in explosive growth. The growth rate reached 641% in 2026. The annual ranking rose to third place, and the market grew rapidly; Wuling Bingo also maintained a positive growth rate of 20%, ranking fourth. Various models such as the QQ3, Firefly, and Huanchi also achieved varying degrees of growth, with only a few models showing a month-on-month decline.

Judging from the trend curve, most models surged higher at the end of 2025, recovered in early 2026, and then picked up again. The A0 class car market is in strong demand. A variety of new products are driving the market. Market competition is becoming more intense, and new energy models are gradually taking the mainstream, driving upward sales in the overall sector.

3. Sales trend of A0 class SUVs

Sales trends of A0 class SUV brands from 2025 to 2026. The overall popularity of this segment was high, and most major models achieved significant growth. Yuan UP performed the most impressive, with a cumulative annual sales volume of 301,500,000 units, and an annual growth rate of 127%, ranking first in the list. The year-on-year growth rate in August reached 173%, and the sales curve rose rapidly in the later stages. Binyue and Zero Run A10 followed, ranking second and third respectively. Qiyuan Q05 surged 621% year on year, Ou Mengda 5 grew 640%, and its market share expanded rapidly.

Looking at the trend curve, sales of most models briefly bottomed out in early 2026, and began to collectively pick up in the second quarter, driving the market with new energy products. Competition on the A0 class SUV circuit has intensified, new energy models have become the main growth force, new and old models are alternating, and the market pattern is being rapidly restructured.

II. Trends in the A-class passenger car market

1. Market trends of the main models of compact cars

The sales trend of various A-class car brands from 2025 to 2026 was under overall pressure on the market, and most mainstream models experienced a sharp year-on-year decline. The Navy Seal 06 ranked first with an annual cumulative total of 142,000 units, but the annual growth rate fell 27%, a year-on-year decline; Emgrand EC7 and Lavida followed, with cumulative annual sales exceeding 100,000 units, Lavida's annual growth rate falling 34%, and traditional best-selling models generally weakened. The Sagitar and Seal 05 are growing slightly. Judging from the curve, most models remained high in 2025, began to decline at the end of the year, generally fell to a low level in early 2026, and some models gradually recovered. There is a fierce game between fuel and new energy, market growth is weak, internal market volume is intensifying, sales of established major models have shrunk, some new power models are seizing market share, and the A-class car pattern continues to change.

2. Market trends of the main compact SUV models

Sales trends of A-class SUV brands from 2025 to 2026. The market segment is fiercely competitive, and various models are showing differentiated performance. BYD accumulated 49.04 units in Song Nian, ranking first in the list, but the year-on-year decline was 16%. Tiggo's 7-year growth rate reached 53%.

Pure electric models have achieved good growth. Zero Run and Sea Lion, new products are full of explosive power; models such as the Tiggo 8 and Sea Lion 05 experienced a year-on-year decline.

Judging from the trend curve, various models rose alternately in 2025, and there was generally a phased trough in early 2026. Since the second quarter, most models have rebounded rapidly. The iteration of new and old products in the A-class SUV market is accelerating, new new energy products are rapidly seizing the market. Some established major models are under pressure, the internal pattern of the sector continues to be reshaped, and the internal market volume is further intensifying.

III. B-Class Passenger Vehicle Market Trends

1. Market trends for B-class and C-class cars

Sales trends in the B-class car market from 2025 to 2026. The competition between old and new forces in the market is intense, and model performance is clearly divided. Model 3 ranked first with an annual cumulative total of 232,600 units, an annual growth rate of 18%. The overall sales curve fluctuated at a high level, and the performance was strong. The Xiaomi SU7 ranked second, but the annual growth rate fell 17%, which is a significant decline from the previous year. Traditional joint venture models are generally under pressure, and Magotan, BMW 3 Series, and Passat all experienced year-on-year declines of more than 20%. Extreme Krypton's growth rate in 007 bucked the trend; autonomous models such as Xingrui and Hongqi H5 also declined to varying degrees. Judging from the trend curve, sales in the entire market generally bottomed out in early 2026, and most models picked up after the second quarter. Competition on the B-class car circuit is intensifying, new energy models are impacting the share of traditional joint ventures, independent brands are rapidly rising, established fuel-fueled B-class cars continue to weaken, and the market pattern is undergoing profound changes.

2. B-class SUV market trends

The sales trend of B-class SUV brands from 2025 to 2026. New energy models dominate the market, and market growth differentiation is very obvious. ModeLY is at the top of the list with an annual cumulative total of 415,000 units, an annual growth rate of 30%, a long-term high sales curve, and strong overall performance. Equation Panther Titanium 7 and Ideal i6 rank second and third. Xiaomi YU7 and NIO ES8 have exploded year-on-year growth, and new products have strong potential. On the other hand, the M9 and Mercedes-Benz GLC experienced a year-on-year decline, and traditional luxury models faced a squeeze. Judging from the curve trend, many models surged higher at the end of 2025, generally declined in early 2026, and picked up again after the second quarter. The internal volume of B-class SUVs has intensified, and new domestic new energy products are rapidly seizing share, impacting traditional luxury SUVs. New and old models are alternating and iterating, and the market pattern continues to be changed.

3. B-grade and above MPV market trends

The sales trend of the B-class MPV market from 2025 to 2026, the competitive pattern of market segments was rapidly restructured, and the performance of new and old models was significantly differentiated. Wuling Starlight accumulated 55,200 units per year, ranking first in the year; Xena and Weipai Takayama followed. The annual growth rate of Weipai Alpine reached 123%, and the Trumpchi E8 grew 63%, achieving a sharp rise; sales of the Zhijie V9 exploded in the late stages, and the growth rate fell 18% month-on-month in August, and the momentum of new products slowed down. Many traditional mainstay MPVs, such as Tension D9, GL8, and Grevia, experienced year-on-year declines.

Judging from the trend curve, various models alternately surged higher in 2025, generally falling into a trough in early 2026, and the market gradually recovered in the second quarter. Domestic new energy MPVs continue to gain strength, continuously squeezing the living space of traditional joint venture MPVs. The internal volume of B-grade MPV circuits has intensified, and market share is shifting to highly competitive new energy products, and the new product cycle is generally short.