The China Association of Automobile Manufacturers (CAAM) forecasts a significant slowdown in the nation’s auto market. CAAM projects vehicle sales growth will cool to just 1% this year, a sharp decline from the 9.4% growth recorded in the previous year. This forecast directly impacts new energy vehicle (NEV) makers, including Li Auto.
The electric vehicle segment also anticipates slower growth. Sales of EVs and plug-in hybrids are expected to increase by 15.2%, down significantly from the 28.2% growth seen in the prior year.
Growth in vehicle exports is also expected to decelerate to 4.3%. This follows a strong 21.1% expansion recorded in 2025. The slowdown reflects weaker demand and external uncertainties.