Cui Dongshu from the China Passenger Car Association (CPCA) pointed out in an article that the auto market performed weakly in July 2026, primarily influenced by multiple factors such as the rebound in oil prices, a weakening macroeconomy, seasonal off-peak periods, prior demand depletion, and policy transitions. Geopolitical conflicts obstructed navigation through the Strait of Hormuz, causing international oil prices to fluctuate upwards. Domestic gasoline prices in China increased by a cumulative 1,575 yuan per ton in 2026, significantly raising vehicle usage costs. Consequently, consumer demand for fuel-powered passenger vehicles sharply declined, though the impact on commercial vehicles remained limited. Meanwhile, the Consumer Price Index (CPI) and Producer Price Index (PPI) declined month-on-month in July, while the Purchasing Managers' Index (PMI) indicated a downturn in business sentiment. Household incomes and consumption expectations turned cautious, with weak willingness to spend on big-ticket durable goods and persistent softness in housing and transportation consumption, further dragging down terminal demand in the auto market. Additionally, the high-temperature off-peak season in July suppressed in-store foot traffic, while the mid-year sales push in June prematurely depleted market demand, resulting in a simultaneous decline in terminal orders and customer visits.