China’s automotive industry is undergoing a major transformation, and the latest sales figures from SAIC Motor show just how uneven that transition has become. The Shanghai-based automotive giant reported 430,018 vehicle sales in October 2026, representing a 5.28% decline compared with the same month last year. However, beneath that overall decrease, the company’s electric and plug-in hybrid vehicle businesses delivered substantial growth.
SAIC sold 258,610 new-energy vehicles during October, an increase of 25.12% year over year, while its international operations also recorded impressive gains. The contrasting results highlight a changing automotive landscape in which Chinese manufacturers are increasingly relying on electrification, domestic brands, and overseas expansion to offset weakness in established vehicle businesses.
October’s Sales Decline Tells Only Part of the Story
SAIC’s October results reveal a business experiencing different pressures across its vehicle divisions. The company sold 430,018 vehicles, down from 453,979 in October 2025, a reduction of 23,961 units. Vehicle production also declined, falling 6.88% year over year to 434,256 units. Those figures suggest that SAIC’s overall scale has not translated into consistent growth across its operations. However, the decline was not evenly distributed. Certain divisions delivered strong improvements, while others experienced substantial losses. This distinction matters because SAIC operates a diverse automotive portfolio covering traditional gasoline-powered vehicles, electric cars, commercial vehicles, and international brands.
Despite the annual decline, October represented SAIC’s strongest sales month of 2026 so far. Deliveries increased approximately 5.9% from September’s 406,051 vehicles, continuing a period of sequential monthly improvement during the second half of the year. Through the first ten months of 2026, SAIC sold 3,577,098 vehicles, compared with 3,647,249 during the equivalent period in 2025. That represents a relatively modest cumulative decline of 1.92%, considerably smaller than the contraction experienced by some individual divisions. The figures suggest the company is finding ways to stabilize overall demand, although stronger monthly performance does not necessarily guarantee that annual sales will return to growth before December
New-Energy Vehicle Sales Surge 25% Despite the Wider Decline
Electrification emerged as one of the strongest parts of SAIC’s October performance. The company recorded 258,610 new-energy vehicle sales, compared with 206,692 in October 2025. That represents growth of 25.12%, even as total vehicle sales declined. New-energy vehicles accounted for approximately 60.1% of SAIC’s October sales, compared with about 45.5% a year earlier. This category includes battery-electric vehicles, plug-in hybrids, and other qualifying technologies such as fuel-cell vehicles. It is therefore important to distinguish SAIC’s broader electrified vehicle performance from sales of fully electric cars alone, since the monthly announcement does not provide a separate battery-electric total.
The changing sales mix is particularly revealing when conventional and other non-new-energy vehicles are considered. Subtracting new-energy sales from the overall figures leaves approximately 171,408 vehicles in October 2026, compared with 247,287 a year earlier. That represents a decline of roughly 30.7% in the remaining vehicle categories. Meanwhile, SAIC’s cumulative new-energy vehicle sales reached 1,646,930 units during the first ten months of 2026, an increase of 27.72%. For manufacturers traditionally dependent on gasoline-powered vehicles, the contrast demonstrates how quickly business priorities are shifting. SAIC’s challenge is no longer simply expanding its electric lineup but ensuring that growth in newer technologies can compensate for losses in older product categories.
SAIC’s Chinese Brands Are Becoming Its Biggest Growth Engine
SAIC’s domestic-brand operations are increasingly responsible for sustaining the company’s overall business. According to the manufacturer’s October announcement, its Chinese-brand portfolio generated approximately 335,000 vehicle sales during the month, representing 9.7% growth from October 2025. These operations have now recorded year-over-year sales increases for ten consecutive months. Between January and October, SAIC’s domestic-brand sales reached approximately 2.638 million vehicles, an improvement of 12.3%. They represented 73.7% of the company’s cumulative vehicle sales, compared with approximately 64.4% during the same period last year. The shift illustrates how SAIC’s future is becoming more closely tied to its own product development and brand strategies.
The performance of individual businesses reveals both opportunities and challenges. SAIC Motor Passenger Vehicle, which includes the MG and Roewe brands, sold 123,879 vehicles in October, an increase of 32.68%. SAIC Maxus, meanwhile, recorded 32,343 sales, representing growth of 62.47%. However, SAIC-GM-Wuling, whose portfolio includes popular Wuling vehicles, reported 157,184 sales, down 6.41%. The company’s premium-focused IM Motors division also experienced a difficult month, with sales falling 40.32% to 7,837 vehicles. These differences demonstrate that Chinese brands are not experiencing uniform growth. Buyers are responding differently across market segments, making product positioning, affordability, and continued innovation increasingly important to SAIC’s overall performance.
Volkswagen and General Motors Partnerships Face Significant Pressure
Two of SAIC’s most established international joint ventures experienced particularly difficult sales results in October. SAIC Volkswagen reported 67,500 vehicle sales, down 27.94% from the 93,669 units recorded a year earlier. SAIC General Motors suffered an even steeper decline, with sales dropping 51.37% to 25,865 vehicles. Together, these businesses sold 53,486 fewer vehicles than in October 2025. That combined reduction was considerably larger than SAIC’s overall sales decline of 23,961 vehicles, demonstrating how growth elsewhere in the group helped absorb weakness in its traditional partnerships. The numbers reflect an important shift in the competitive balance between established international automotive brands and rapidly expanding Chinese manufacturers.
The challenges extend beyond a single month. During the first ten months of 2026, SAIC Volkswagen’s cumulative sales declined 33.80%, while SAIC General Motors recorded a 15.46% reduction. General Motors has also acknowledged restructuring efforts affecting its Chinese joint venture, reflecting a broader attempt to strengthen competitiveness in the market. However, both partnerships continue to pursue electrification. SAIC reported cumulative new-energy vehicle sales growth of 49.1% for its Volkswagen partnership and 56.2% for its General Motors partnership. These gains indicate that the businesses are participating in the transition toward electrified vehicles, even though their expanding electric operations have not yet been sufficient to prevent substantial declines in their total vehicle sales.
Overseas Markets Provide Another Major Source of Growth
International markets are becoming increasingly important to SAIC’s business. During October, the company reported 162,500 vehicles in its combined export and overseas production-base sales category, representing a 67.28% increase from the 97,144 vehicles recorded a year earlier. Through the first ten months of 2026, the total reached 1,328,092 vehicles, an increase of 54.04%. This growth provides SAIC with a degree of protection against weaker domestic demand. Rather than relying entirely on Chinese buyers, the manufacturer can draw sales from several regions with different economic conditions and vehicle preferences. Importantly, these international figures include overseas operations and are already represented within SAIC’s overall reporting, rather than being additional vehicles sold beyond the company’s consolidated total.
Europe remains especially important to SAIC’s international ambitions, largely through its MG brand. According to the company, MG sold approximately 320,000 vehicles across Europe between January and October, representing 24.7% growth. In the United Kingdom, September sales exceeded 18,000 vehicles, setting a monthly record for the brand. Germany has also shown encouraging interest, with cumulative orders for the MG4 EV Urban surpassing 16,000 units, although orders should not be confused with completed deliveries. Meanwhile, MG’s September sales in Poland increased 88% year over year. These figures suggest that SAIC’s international expansion is gaining traction across multiple markets, supported by an increasingly varied lineup that includes electric, hybrid, and conventional vehicles.
New Electric Models Are Reshaping SAIC’s Product Strategy
SAIC’s electrification efforts extend well beyond launching a single successful electric vehicle. Its expanding lineup includes affordable family transportation, technology-focused sedans, premium SUVs, and electrified commercial vehicles. During October, the company reported that both the MG4 and MG 07 continued achieving monthly sales exceeding 10,000 units. SAIC-GM-Wuling’s Huajing S also recorded more than 7,500 deliveries during the month. Meanwhile, the new-generation IM LS6 accumulated more than 8,000 deliveries after its September introduction. These vehicles illustrate the manufacturer’s attempt to reach customers with different expectations, whether that involves everyday commuting, family practicality, advanced technology, or a more premium driving experience.
New product introductions are also generating attention before vehicles reach customers. SAIC said its Roewe Jiayue 07 received more than 10,000 confirmed orders within one minute and 53 seconds of its October launch, although such orders are not equivalent to completed sales. Across the first ten months of 2026, SAIC Motor Passenger Vehicle recorded approximately 491,000 new-energy vehicle sales, an increase of 157.4%. SAIC Maxus also recorded approximately 91,000 new-energy vehicle sales, up 82.9%, while SAIC-GM-Wuling reached roughly 720,000 units. The results show that electrification is spreading across multiple parts of the business, rather than remaining concentrated in one premium brand. Maintaining that momentum will depend on converting strong initial interest into sustained customer deliveries.
China’s Changing Auto Market Will Test SAIC’s Recovery
SAIC’s October results reflect wider changes across China’s automotive industry. According to the Ministry of Industry and Information Technology, Chinese vehicle sales declined 8.4% year over year in September 2026, reaching 2.956 million units. During the same month, national new-energy vehicle sales increased 13.6% to 1.823 million vehicles, representing 61.6% of total sales. Chinese vehicle exports also expanded sharply, rising 61.4% to approximately 1.053 million units. Although these national statistics cover September rather than October, they illustrate the market conditions surrounding SAIC’s latest performance. China’s automotive sector is increasingly characterized by strong international expansion and electrification alongside weaker demand in several traditional vehicle categories.
Government incentives are another important consideration. China’s 2026 vehicle trade-in program allows eligible consumers who scrap qualifying older vehicles and purchase new-energy passenger cars to receive subsidies of up to 20,000 yuan, subject to purchase-price limits and other conditions. Such policies can encourage vehicle replacements, although SAIC’s October figures do not establish how many purchases benefited directly from government assistance. Looking ahead, the manufacturer expects recently introduced vehicles and stronger year-end consumer activity to support additional sales. However, the challenge remains substantial. SAIC must continue expanding its electric and international businesses while limiting declines at established joint ventures. October provided encouraging evidence that its transformation is progressing, but a sustained recovery in total vehicle sales will require more consistent results across the group.
