In Depth: China Hunts for a New Auto Engine

For years, China’s booming automotive market served as a primary engine propelling the nation’s retail growth. But as the calendar turned to 2026, that once-dependable engine suddenly stalled.

In the first half of this year, the country’s automotive spending plunged 12.6% year-on-year to 1.97 trillion yuan ($291 billion), the sharpest drop among all consumer goods, National Bureau of Statistics data show. Vehicle sales, which historically accounted for roughly 10% of consumer goods sales, shrank to 7.9% during the period.