On July 8, data released by the China Passenger Car Association (CPCA) showed that retail sales of passenger vehicles in the national market reached 1.602 million units in June, down 23.2% year‑on‑year but up 6.1% month‑on‑month; cumulative retail sales for the first half of the year totaled 8.701 million units, a year‑on‑year decline of 20.2%.
Various data successively published by domestic automakers also indicate that the overall Chinese auto market faced significant pressure in the first half of 2026. However, against the backdrop of a sluggish overall market, the independent (Chinese domestic) brand camp has shown a clear divergence. Three dark horses – Chery, Leapmotor, and Zeekr – have broken through against the trend, becoming the standout growth drivers in the “mid‑year report cards" and reshaping the landscape among top automakers.
Chery Group’s data show that its cumulative sales in the first half of 2026 reached 1.3575 million vehicles, up 7.7% year‑on‑year – the fastest growth among domestic brands – and achieving 42.42% of its annual target of 3.2 million vehicles. The new energy vehicle (NEV) segment was the core growth engine for Chery, with NEV sales of 475,000 units in H1, surging 32.3% year‑on‑year, and monthly NEV sales exceeding 100,000 for three consecutive months.
In the new‑force EV startup arena, Leapmotor took the lead. In the first half, Leapmotor topped the startup rankings with cumulative deliveries of 356,000 vehicles, a substantial year‑on‑year increase of 60.8%. Its monthly sales have steadily surpassed 90,000 units, and its full‑stack self‑developed technology has widened the gap with other EV startups.
Geely Group’s premium brand Zeekr achieved leapfrog growth, delivering 178,300 vehicles in the first half – a year‑on‑year surge of 97% – successfully breaking through in the high‑end electric vehicle segment.
BYD, the largest domestic brand in terms of sales volume, posted cumulative sales of over 1.808 million vehicles in H1, down 15.72% year‑on‑year. In the same period, Changan Automobile delivered 1.1956 million new vehicles, a year‑on‑year decline of 4.2%, with its full‑year target of 3.3 million vehicles achieved at 36.23%.
Among joint‑venture brands, Beijing Hyundai reported sales of 94,700 vehicles in the first half; its June sales of 17,400 vehicles rose 5.4% month‑on‑month, indicating a continued recovery at the retail end and a stable operational trend.
Reviewing the data, the reporter found that overseas market increments have become a common pillar of growth for all automakers that posted gains, with domestic brands relying on exports to drive expansion.
BYD’s overseas cumulative sales in the first half reached approximately 789,000 vehicles, skyrocketing about 70.5% year‑on‑year. Chery exported 945,000 vehicles in H1, up 71.5% year‑on‑year, setting a new record for a Chinese automaker’s half‑year exports exceeding 900,000 units.
Geely Group’s overseas exports reached 474,000 vehicles, a year‑on‑year increase of 158%, surpassing its total overseas sales for the full year 2025 in just six months. SAIC Group’s overseas sales reached 735,000 vehicles, up 48.7% year‑on‑year; Great Wall Motors delivered 291,400 vehicles overseas, with overseas sales accounting for more than 50% of its total.
Changan Automobile delivered 402,000 vehicles in overseas markets in H1, up 35.1% year‑on‑year, making it the company’s primary growth engine.
In contrast, domestic brands that saw sluggish growth generally suffered from delayed overseas expansion and imbalanced domestic product structures.
“New energy transformation and systematic overseas expansion are the twin core engines for automakers to navigate market cycles. All brands that achieved high growth have simultaneously completed layouts in both tracks," analyzed Wang Chuan, President of the Sichuan Provincial Automobile Circulation Association. “Based on the market changes in the first half, a clear industry judgment can be made: in the short term, overseas markets remain the optimal solution for automakers to break free from intense domestic competition."
However, competition among Chinese automakers in overseas markets has already arrived. BYD, SAIC, and Geely are continuously increasing their overseas investments, and overseas markets are rapidly shifting from high‑profit areas to red‑ocean battlegrounds. The simple model of low‑price, high‑volume exports is becoming unsustainable.
“In the long term, the decisive factor for automakers does not lie in short‑term sales volumes, but in whether they can complete the transition from 'product exports’ to 'systematic global expansion’ while building proprietary technological moats," Wang pointed out. For example, Chery Group is laying out solid‑state batteries and full‑domain AI intelligence systems, and has acquired Nissan’s South Africa plant to build an overseas manufacturing hub, following a systematic expansion route. Changan Automobile is promoting the integration of back‑end resources for its Deepal and Avatr brands, expecting to achieve overall hardware‑software cost reductions of 20%‑30% through ecosystem synergies – both models represent the long‑term development directions of the industry.
Industry insiders predicted that market expectations are likely to gradually improve after July, and the decline in retail sales is expected to narrow progressively in the third and fourth quarters.
