Sales by the world’s 20 largest car producers fell by 2.8% y/y in 1H2026

The sector must adapt quickly to new market and technological conditions

Sales by the world’s 20 largest car manufacturers in the first half of 2026 fell by 2.8 per cent year-on-year – to approximately 37.3 million vehicles. This is according to the latest analysis by the Centre of Automotive Management (CAM).

Fourteen of the 20 leading manufacturers reported a decline in production volumes.

As noted by CAM Director and Head of Research Stefan Bratzel, the global automotive industry is entering a new phase of market upheaval.

“Those who are unable to adapt quickly to new market and technological conditions risk being squeezed out in the long term,” he explained.

According to the CAM director, the current year is likely to be yet another factor accelerating consolidation and restructuring in the global automotive industry. The fall in sales, he explained, reflects a combination of economic weakness, geopolitical uncertainty, high financing costs and increasingly fierce technological competition.

According to the study, the top five companies that increased their sales in various regions during the first half of the year were:

• Tesla – up 16.3 per cent year-on-year,
• SAIC – up 12.7 per cent,
• Stellantis – up 10.8 per cent, thanks to the recovery of the North American market,
• Suzuki – up 9.9 per cent, as the company has a strong presence in India,
• Chery – up 7.7 per cent, thanks to international expansion and demand for electric vehicles.

According to the CAM report, German carmakers – Volkswagen, BMW and Mercedes – recorded a fall in sales in the first half of 2026, losing a significant share in China – the world’s largest car market. Overall, they do not expect an improvement by the end of the current year. For German car manufacturers, the decline in sales between January and June ranged from 4.2% to 7%.

The three main markets covered by the study developed differently in the first half of 2026. Whilst car sales in China fell by 20% over the period, and by 3% in the US compared with the previous year, the figure in Europe rose by approximately 4.5% year-on-year.

The European market, in particular, was buoyed by growing demand for electric vehicles and new models. In the US, the negative impact was driven by weaker market conditions, as well as uncertainty surrounding trade policy and regulation. The sharp decline in China shaped the global sales balance and, at the same time, accelerated the international expansion of Chinese manufacturers.

As reported in June, Europe’s largest car manufacturer, Volkswagen, was considering the biggest restructuring in its history, including doubling the planned job cuts to 100,000 and closing four German plants.