China Auto Industry: June sales: Weak domestic, robust exports; Chinese brands gain share rapidly in Europe

Research evidence excerpt

China Auto Industry: June sales: Weak domestic, robust exports; Chinese brands gain share rapidly in Europe

J P M O R G A N Asia Pacific Equity Research

10 July 2026

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China Auto Industry

June sales: Weak domestic, robust exports; Chinese

brands gain share rapidly in Europe

CAAM’s June sales release was broadly in line with expectations, with the sector Head of APAC Auto Research

ACstill showing a clear split between strong export momentum and weak domestic Nick Lai

demand. We believe the continued softness in domestic PV demand was likely one (65) 6801-3176

of the key reasons behind China auto sector’s weakness in June, with MSCI China nick.yc.lai@jpmorgan.com

Autos -19% vs. MXCN’s -8% during the month. June domestic PV sales fell 26% J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

YoY to 1.5mn units, while PV exports rose 80% YoY to 0.9mn units, reinforcing Morgan Broking (Hong Kong) Limited

our view that the sector’s near-term positive fundamentals remain export-led rather Jiajie Shen, CFA

than domestic market-led. Against this backdrop, we view the current pullback as (86-21) 6106 6352

a selective buy-the-dip opportunity especially for the one(s) with potential jiajie.shen@jpmchase.com

SAC Registration Number: S1730520030006

earnings beat at the upcoming 2Q26 result season in Aug (e.g. Geely Auto, Nio J.P. Morgan Securities (China) Company Limited

while BYD likely meet) rather than a broad-based sector call. We would only