On average, 3 new cars are launched each day, with over 600 new models introduced in the first half of the year. "But if you cover up the car logos, it might seem like there are only 3 models," yet less than 30 cars sell more than 10,000 units per month, while some models sell as few as 36 units per month. Which companies have become the "guinea pigs" of this market trend?

Summary of Key Points

In the first half of 2026, the domestic car market witnessed a surge in new vehicle launches—on average, three new cars were released each day (with a total of over 600 models). However, this vibrant supply side did not drive an increase in sales: retail sales of passenger vehicles decreased by 20% year-on-year from January to June. Most of the new cars failed to meet market expectations, with monthly sales of fewer than 10,000 units for most models, and some selling just a few dozen units. A few "dark horses" (such as the ZeroRun A10 and WM Motor M9) managed to stand out due to their precise market positioning, while older models (like the Camry and Model Y) continued to lead in sales. The industry is facing what could be called a "new car death valley"—new models gain popularity for a short period before fading from public interest. Car manufacturers need to find solutions in areas such as product design, customer service, and differentiation.

Detailed Analysis

1. Surplus of New Cars but Declining Sales

The number of new cars released in the first half of the year was unprecedented: 7-10 models were launched each week, with 181 new models making their debut at the Beijing Auto Show. Even car executives joked that it was hard to distinguish between them without looking at the brand logos (they all resembled models from brands like Range Rover, Porsche, etc.). Despite this surge, sales did not increase; in fact, they decreased by 20% year-on-year. The China Association of Automobile Manufacturers (CAAM) noted that the "new car effect" is becoming shorter-lived and no longer drives sales growth.

Experts explain this phenomenon by comparing cars to smartphones, where chip and battery technologies are updated rapidly, making older models obsolete within a few months. Car manufacturers, in fear of being left behind, rush to release new models to stay competitive. However, consumers become overwhelmed with choices, and the novelty of these new cars fades quickly as they are overshadowed by subsequent releases, resulting in overall sales stagnation.

2. Success for Some Dark Horses, Failure for Many New Models

A few new models managed to succeed:

• ZeroRun A10: Launched in March, it stood out with its spacious interior, comprehensive features, and affordable price, selling 25,000 units in June (ranking third in a car review).
• WM Motor M9: Released in May, its sales exceeded 10,000 units in June, making it the top-selling mid-large SUV.
• HaiShi 05DM: After a facelift in April, sales increased from 22 units in March to 11,000 units in June.

Many new models, however, failed:

• ZhiJi LS8: Sales surged after its launch but declined sharply in June due to frequent price changes and customer complaints.
• iCAR V27: Sold 2,681 units in March but saw a sharp drop to 2,219 units in June; it relied on OTA updates to salvage its reputation.
• Sagitar S: A classic fuel-powered car, its sales dropped from 16,000 units in March to 9,221 units in June, reflecting the overall decline in the fuel vehicle market.
• Xpeng G9: Despite a facelift in 2026, its sales in June were only 265 units, compared to a peak of 3,590 units the previous year.

In summary, only those models that meet consumer needs (value for money, spaciousness) survive; those that fail to address user issues or provide poor service quickly disappear from the market.

3. Older Models Proving More Popular

Among the top three best-selling cars in June, most were older models:

• Cars: Camry (launched in China in 2006), Xiaomi SU7 (2024), XingYuan (2024).
• SUVs: Model Y (2021), ZeroRun A10 (2026), Li Auto ES6 (2025).
• MPVs: Buick GL8 (2000), GAC Trumpchi M8 (2017), Serena (2021).

The reason older models are more popular is that they have been tested by the market, demonstrating stability and reliability. Consumers are less likely to encounter issues with them and prefer to buy cars they can trust.

4. How to Overcome the "New Car Death Valley"

Car manufacturers need to address three key challenges:

• Chang Cheng Wei Jianjun: Cars are not fast-moving consumer goods; frequent model changes and unnecessary new releases can erode brand trust.
• NIO Li Bin: There is no shortcut to success; it requires a combination of product innovation, technological leadership, and effective customer management.
• SAIC Zhang Liang: Three essential aspects must be met:

1. Basic Requirements: Good looks, practical features, and comfortable driving experience (e.g., sufficient space, useful configurations).

2. Essential Services: Excellent customer service and access to advanced technologies (even for affordable cars).

3. Differentiation: Unique features that set a model apart from competitors.

In short, car manufacturers must focus on building solid products, providing quality services, and creating distinctives to stand out in the competitive market.

Conclusion

The era of relying solely on the quantity of new models is over. Only those companies that truly understand consumer needs and produce high-quality products will survive in this highly competitive market.