Chinese cars are gaining global popularity, with sales rising in various markets except China itself. In May, new-car sales in China decreased by 22% year-over-year, marking the eighth consecutive month of decline, and leading to a nearly 20% decline in year-to-date sales. This downturn is negatively impacting the profits of leading Chinese car manufacturers.

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https://www.wsj.com/business/autos/everyone-loves-chinese-cars-except-the-chinese-b1533c82

Everyone Loves Chinese Cars, Except the Chinese

Domestic market shrinks 20%, hitting carmakers’ profits and pushing them to export more

Stephen Wilmot

and

Raffaele Huang

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Two blue Xiaomi SU7 Max cars are displayed on elevated circular platforms in a showroom. A Xiaomi SU7 Max car is displayed at the entrance to the Xiaomi EV Factory in Beijing. greg baker/Afp/Getty Images

The world is applauding the latest Chinese vehicles and sales are surging almost everywhere the cars are available. The one exception: China itself.

New-car sales in China, the world’s largest new-vehicle market, fell 22% in May compared with the same month a year earlier to around 1.5 million vehicles. That was the eighth straight month of year-over-year declines, according to the China Passenger Car Association. Year-to-date car sales are running nearly 20% below last year, hitting profits at the country’s leading carmakers.

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Everyone Loves Chinese Cars, Except the Chinese

Everyone Loves Chinese Cars, Except the Chinese

Domestic market shrinks 20%, hitting carmakers’ profits and pushing them to export more

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