--- title: "China’s EV deliveries continue downward spiral, exacerbating industry worries" type: "News" locale: "en" url: "https://longbridge.com/en/news/291874435.md" description: "China's EV deliveries fell 7% in June and 13% in H1 2026, marking the sixth consecutive monthly decline. This trend exacerbates profitability concerns as weak consumer sentiment triggers price wars, with only three major assemblers currently profitable. Concurrently, Beijing is phasing out EV tax exemptions starting January 2027. To offset domestic slumps, Chinese automakers are accelerating overseas expansion, with exports projected to rise 41% to 10 million units in 2026." datetime: "2026-07-07T04:04:31.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291874435.md) - [en](https://longbridge.com/en/news/291874435.md) - [zh-HK](https://longbridge.com/zh-HK/news/291874435.md) --- # China’s EV deliveries continue downward spiral, exacerbating industry worries China’s electric vehicle (EV) deliveries in June failed to match their year-on-year numbers for the sixth month in a row, even as carmakers offered promotions to attract budget-conscious consumers, exacerbating worries about Chinese EV firms’ profitability. A total of 1.04 million pure electric and plug-in hybrid cars were handed to customers in mainland China last month, down 7 per cent from the same period in 2025, preliminary data from the China Passenger Car Association showed. During the first half of 2026, EV deliveries in the world’s largest automotive and electric car market fell 13 per cent from a year earlier to 4.73 million units. “Weak consumer sentiment bodes ill for the EV market this year,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “Shoppers are expecting car brands to further slash prices of their vehicles as they take a ‘wait-and-see’ attitude.” Last week, global consultancy AlixPartners predicted sales of light vehicles - passenger cars and pickups - would slump 27.7 per cent year on year in 2026, owing to a shaky economy and softening government support. Expectations for a new round of price wars have heightened amid a weak domestic market, but further price cuts could affect nearly all Chinese EV makers as their profit margins narrow, according to analysts. Only three Chinese EV assemblers – BYD, Leapmotor and Xiaomi – are profitable at present. Another 20 or so manufacturers make both EVs and petrol cars. AlixPartners forecast that only seven of China’s 30 EV-dedicated carmakers would break even by 2030, with small and weak players likely to either exit the market or be acquired by stronger rivals, the consulting firm said in a report last week. Beijing adjusted its subsidy policy and began to phase out an EV sales tax break this year, reducing support to EV assemblers. A buyer of an EV is now subject to a 5 per cent sales tax, after a preexisting exemption was halved on January 1. On Friday, China’s Ministry of Finance, along with the State Taxation Administration and the Ministry of Industry and Information Technology, announced Beijing would cancel a tax exemption for using new-energy vehicles from January 1, 2027. The annual tax per car ranges from about 360 yuan to 660 yuan. Chinese carmakers have stepped up overseas expansion this year to offset their domestic sales decline, launching new models and opening showrooms abroad to attract foreign clients. AlixPartners said in its report last week that it would expect exports of Chinese-made cars, mostly EVs, would jump 41 per cent year on year to 10 million units in 2026. ### Related Stocks - [159306.CN](https://longbridge.com/en/quote/159306.CN.md) - [MOTO.US](https://longbridge.com/en/quote/MOTO.US.md) - [562260.CN](https://longbridge.com/en/quote/562260.CN.md) - [CARZ.US](https://longbridge.com/en/quote/CARZ.US.md) - [516110.CN](https://longbridge.com/en/quote/516110.CN.md) - [159323.CN](https://longbridge.com/en/quote/159323.CN.md) - [CARU.US](https://longbridge.com/en/quote/CARU.US.md) - [02845.HK](https://longbridge.com/en/quote/02845.HK.md) - [KARS.US](https://longbridge.com/en/quote/KARS.US.md) - [562700.CN](https://longbridge.com/en/quote/562700.CN.md) - [01211.HK](https://longbridge.com/en/quote/01211.HK.md) - [002594.CN](https://longbridge.com/en/quote/002594.CN.md) - [09863.HK](https://longbridge.com/en/quote/09863.HK.md) - [01810.HK](https://longbridge.com/en/quote/01810.HK.md) - [HYDD.SG](https://longbridge.com/en/quote/HYDD.SG.md) - [BYDDY.US](https://longbridge.com/en/quote/BYDDY.US.md) - [BYDDF.US](https://longbridge.com/en/quote/BYDDF.US.md) - [81211.HK](https://longbridge.com/en/quote/81211.HK.md) - [XIACY.US](https://longbridge.com/en/quote/XIACY.US.md) - [81810.HK](https://longbridge.com/en/quote/81810.HK.md) - [HXXD.SG](https://longbridge.com/en/quote/HXXD.SG.md) ## Related News & Research - [EVs dominate China’s car market: 5 takeaways from the country's latest auto sales data](https://longbridge.com/en/news/295598567.md) - [Global EV sales hit 2 million in June – and the US falls further behind](https://longbridge.com/en/news/292251321.md) - [GM’s Secret Trick To Make The Chevy Bolt EV Cheaper: Build Them 30 At A Time](https://longbridge.com/en/news/286738228.md) - [AutoTrader data show 3-5-year-old used EVs sell in 21 days, fastest segment in June UK market](https://longbridge.com/en/news/290283752.md) - [Jeep’s Parent Company Is Considering Building Chinese EVs In North America](https://longbridge.com/en/news/287595796.md)