China's multi-cylinder gasoline engine sales reached 10.1174 million units from January to July 2026, down 12.92% year-on-year. Chery topped the ranking with 1.7463 million units and 17.26% market share, followed by Geely Power at 1.2343 million and BYD at 1.034 million. Passenger vehicle gasoline engine sales plunged 24.33% in July alone.
Market Structure: Domestic Trio Dominates Top Tier
According to data from the China Internal Combustion Engine Industry Association, cumulative multi-cylinder gasoline engine sales from January to July 2026 stood at 10.1174 million units, representing a 12.92% year-on-year decline. Amid overall market contraction, concentration among top players increased further, with the domestic trio (Chery, Geely, BYD) monopolizing the top tier above 1 million units.
First Tier (1M+ units) Market Landscape:
| Rank | Manufacturer | Jan-Jul Sales (10k units) | Market Share | YoY Change |
|---|---|---|---|---|
| 1 | Chery | 174.63 | 17.26% | Leading by 5pp+ |
| 2 | Geely Power | 123.43 | 12.20% | Solid second place |
| 3 | BYD | 103.40 | — | First 1M breakthrough |
Chery's gasoline engine sales lead is closely tied to its export strategy—Chery is China's top auto exporter, and most export models are fuel vehicles, directly driving engine demand.
Second and Third Tiers: Joint Ventures Under Pressure
The second tier (500k-level) and third tier (below 500k) also show the rising trend of domestic brands:
| Rank | Manufacturer | Jan-Jul Sales (10k units) | Market Share |
|---|---|---|---|
| 4 | FAW-Volkswagen | 58.17 | 5.75% |
| 5 | Hive Power (Great Wall) | 55.44 | 5.48% |
| 6 | Changan | 50.28 | 4.97% |
| 7 | GAC Toyota Engine | 32.17 | 3.18% |
| 8 | SAIC Motor | 31.77 | — |
| 9 | SGMW | 27.11 | 2.68% |
| 10 | FAW Toyota | 23.57 | — |
Notably, Great Wall's Hive Power has surpassed Changan to become the fifth-largest gasoline engine manufacturer. Among joint ventures, FAW-Volkswagen remains fourth overall, but its share is being eroded by domestic brands.
Structural Changes Behind the Decline
The continued shrinkage of the gasoline engine market reflects the rapid rise of NEV penetration:
- Industry-wide contraction: Down 12.92% YoY in Jan-Jul 2026
- Passenger vehicle engines declining faster: July sales at 1.2107 million units, down 24.33% YoY
- BEV substitution effect: Pure electric penetration continues climbing, directly squeezing ICE market share
However, gasoline engines remain essential for fuel, PHEV, and EREV vehicles. BYD, though having ceased pure fuel vehicle production, uses substantial gasoline engines in its PHEV and EREV models, driving its engine demand past the 1 million milestone.
Head Concentration Trend Intensifies
Industry data shows CR4 rose from 26.90% in 2022 to 44.50% in 2025, while CR8 increased from 45.41% to 58.91%. In Jan-Apr 2026, CR4 and CR8 further climbed to 49.49% and 60.65% respectively.
For overseas observers tracking China's auto industry chain, the shifting gasoline engine market landscape reflects the sector's profound transformation. Visit EX1000.COM for more updates.
