China’s car market is heading for its worst year since 2021. Sales fell 20% in the first half.

China’s passenger car sales fell 20.2% in the first half of 2026 to 8.7 million units, and the China Passenger Car Association has lowered its full-year forecast to a 14% decline, projecting 20.4 million deliveries, down from a record 23.7 million in 2025. Citic CLSA’s Xiao Feng expects a 20%…