China’s passenger vehicle market is on track for its weakest year since 2021 as sales fall sharply after record deliveries in 2025. According to industry reporting, first-half 2026 passenger car sales decline 20.2% year over year to about 8.7 million units. The downturn follows record-high 2025 sales of 23.7 million units. The China Passenger Car Association lowers its outlook for the full year, projecting a 14% drop and about 20.4 million deliveries, compared with 23.7 million in 2025. Another cited forecast from Citic CLSA’s Xiao Feng expects a roughly 20% decline for the full year. Separately, CNBC reports that the broader car market is heading for its worst year since 2021, with sales plunging around 20%. Taken together, the outlets describe continued weakness in consumer demand, reflected in both first-half results and revised full-year forecasts.