The Chinese passenger car market shrunk by 24.3% in the first half of 2026
- 说明
The Chinese passenger car market shrunk by 24.3% in the first half of 2026
- While Chinese automobile exports increased by 72% in the first half of 2026 compared to the first half of 2025, reaching 4,432,377 units from 2,577,054 units, the Chinese passenger car market is still experiencing a significant decline, according to this year's forecasts (-24.3% in the first half of 2025). A further decline of 26.4% was recorded in June 2026, the steepest drop since the beginning of the year. The Chinese economy is heavily impacted by the Iran-Iraq War and market saturation in the automotive sector.
- Exports do not need to be fully compensated for in the Chinese market, and the sum of domestic market and exports was reduced to 6% in the first half of 2026, as was the report for the first half of 2025.
- The other brands (excluding Tesla) are experiencing even greater losses in the Chinese market. Their market share (including Tesla) is projected to fall to 27.5% in the first half of 2026, down from 37.5% in 2025. For example, we are seeing declines of 19% for BMW, 21% for Nissan, 31% for the Volkswagen Group, 33% for Mercedes, and 45% for Honda.
- According to the report, the Volkswagen Group achieved sales of 383,000 units in the past six months. BYD, with 336,000 units sold to date, remains in third place within the Volkswagen Group and is the market leader in China. Other brands include BYD, Geely, Chery, and SAIC.
- The Chinese government's target is expected to be -11%, which remains difficult to achieve.
MG is expanding its product range both downwards and upwards
- 说明
MG is expanding its product range both downwards and upwards
- In the first six months of 2026, MG remained the Chinese manufacturer with the most vehicles sold in Europe (30 countries: EU + UK + Switzerland + Norway) with over 180,000 units (compared to 153,000 in the first six months of 2025). The European market is relatively large and includes two sedans (MG3 Hybrid and MG4 Electric), five SUVs (EHS Hybrid, S5 Electric, S6 Electric, S9 Hybrid, ZS Hybrid) and one convertible (Cyberster Electric).
- Nevertheless, MG intends to reach the broadest possible customer base and announces four new models, two of which will complement the range at the lower end and two at the upper end.
- 1/ Further down : MG announces a fully electric B-class vehicle for 2027 (the MG 3 is a hybrid). It is intended to compete with the Renault 5 E-Tech and the Volkswagen ID. Polo, will feature a very European design (similar to the Mini), and will cost between €20,000 and €25,000. The MG 4 Urban is the second model, which customers can reuse and is offered at a lower price point (€25,000) for a C-class vehicle.
- 2/ Upwards : The IM brand is to MG what Lexus is to Toyota. MG promoted the marketing of the high-performance electric vehicles IM 5 and IM 6 (800V plate, 100kWh battery), which compete with the Tesla Model 3 and Tesla Model Y respectively, with tariffs for both that are lower and lower, making the IM 5 cost €54,000 per month (€37,000 to €58,000 for the Tesla Model 3) and the SUV IM 6 €57,000 (€41,000 to €63,000 for the Tesla Model Y).
- With these four additional models, MG aims to maintain its position as the leading Chinese brand in Europe.
Honda offers an electric vehicle from the A segment in Europe
- 说明
Honda offers an electric vehicle from the A segment in Europe
- Honda has beaten Stellantis (whose future electric cars are planned for 2028) to the punch and seized the opportunity to launch a electric K-Car derivative in Europe: the Super N (derived from the Japanese Honda N-ONE) at a price of around €22,000. We are eager to see the European public's reaction.
- In Japan, K-cars have enjoyed undisputed popularity for many years, accounting for 35 to 40% of the Japanese passenger car market annually. Paradoxically, K-cars are exclusively available with internal combustion engines, never with electric motors. Only with the market launch of the Mitsubishi e- MiEV in 2010 did some manufacturers show significant interest in the electrification of K-cars, such as Nissan with the Sakura (2022) and Honda with the N-VAN (2024), but without much success. The Chinese manufacturer BYD has also launched an electric K-car in Japan.
- Now Honda is launching the Super N in Europe, which is based on the K-model Honda N-ONE. The manufacturer has to break new ground with this vehicle type in Europe (it doesn't enjoy the influence of the electric K-models in Japan; it's paradoxical that the Japanese are introducing an electric K-model in Europe).
- The Honda Super N is a size larger than the N-ONE: it is 3.60 m long (compared to 3.40 m for the N-ONE) and 1.57 m wide (compared to 1.48 m for the N-ONE). It features a 63 hp electric motor and a 29.6 kWh battery with a range of 200 km according to the WLTP cycle. The Super N weighs 1,097 kg.
Ford is planning a future Transit based on the Renault Master
- 说明
Ford is planning a future Transit based on the Renault Master
- Ford is collaborating with Renault to develop a successor for the large Transit van, which is used in the N1-3 segment. The Transit, which has long been available in turquoise, will continue to be offered in a separate turquoise variant with different license plates. The future Transit could therefore use the platform of the Renault Master, which is due for a facelift in 2024. Conversely, Renault could revive the Transit Courier under its own brand to replace the Express Van, whose production was discontinued two years ago due to non-compliance with the European GSR2 regulation.
- The project is based on data from the Ford Transit Custom (slightly more compact than the Transit), which was launched in 2023, and is internally linked to Volkswagen. Volkswagen has granted Ford the option of using the model under its own brand name (it was originally introduced in 2024 in the Volkswagen Transporter T7). Given its declining influence in the European market (Ford's market share of the European passenger car market is projected to be only 3.2% in 2026, compared to 6.4% in 2018, 8.4% in 2008, and 10.0% in 1998), Ford could receive a fair share of the launch costs for future models. Sharing these costs is proving to be an interesting solution.
- Ford has several agreements with German manufacturers, which are among the second-largest suppliers in Europe. This also impacts one of the largest commercial vehicle manufacturers (with a market share of around 15%). Ford has an agreement with Volkswagen for the Transit Connect (N1-2) and the Transit Custom (N1-3), with Renault for the future all-electric Fiesta and Puma models, and with Geely for the future Ford Kuga and vehicle sharing. The Valence-based company is also responsible for vehicle sharing, and it is possible that Renault will also be involved in the future Ford Transit.
Santana has unveiled its SUV, which is derived from a BAIC model
- 说明
Santana has unveiled its SUV, which is derived from a BAIC model
- Santana Motors was an independent Spanish small car manufacturer that held a factory license to produce vehicles from other brands from 1985 to 2003, including the Suzuki Vitara SUV from 2000 to 2005 and the Iveco Massif and Campagnola SUVs from 2006 to 2011. Santana went bankrupt in 2011 and ceased production by 2026.
- In 2025, an agreement was signed between Santana and a Chinese consortium. This joint venture also includes the Chinese manufacturer Dongfeng and the Japanese manufacturer Nissan. The goal was to produce the Dongfeng Z9 and the Nissan Frontier in China using SKD (skim-cut die) assembly. To mark this occasion, the Santana 400 was created. The model has now been unveiled and will be assembled in Linares, using SKD assembly starting in autumn 2026.
- Another agreement was reached during negotiations between Santana and the Chinese manufacturer BAIC. The SUV will be manufactured in China under the BAIC brand. The currently available top model, the Santana Cajal, is a BAIC BJ40 SUV produced in China and has no comparable vehicles on the European market.
- SKD assembly of the Santana Cajal is scheduled to begin in autumn 2026 at the Linares plant. It's an old-school SUV, a true off-roader embodying the philosophy of the Toyota Land Cruiser, Land Rover Defender, Ineos Grenadier, or Ford Bronco. The Cajal will be powered by a 163 hp diesel engine, a 245 hp gasoline engine, or a plug-in hybrid powertrain adopted from the BAIC model.