At the 2026 China Automotive Chongqing Forum, NIO CEO Li Bin issued an industry warning, calling on the sector to prepare psychologically for a potential year-on-year decline of 15% to 20% in domestic auto retail sales in 2026. Li Bin said China’s auto industry has entered its most intense final stage, adding that this year has been the most challenging market environment he has faced since entering the industry.
China’s passenger vehicle ownership has reached 370 million units, which marks a shift away from rapid growth toward a stock-driven market with intensified competition. As of now, cumulative domestic passenger vehicle retail sales this year stand at 7.327 million units, already down 20% year-on-year. [TechWeb, in Chinese]