Car prices in mainland China are becoming increasingly affordable, but fewer people are buying cars. According to data from the National Bureau of Statistics of the Communist Party of China, car consumption in April decreased by 15.3% compared to the same period last year. Analysts believe that behind the reluctance of mainland Chinese to spend money is the fear that they may not be able to earn money in the future.
The April classification data released by the National Bureau of Statistics of the Communist Party of China shows that the total retail sales of consumer goods in China only increased by 0.2% year-on-year, indicating a nearly stagnant overall consumption. Bulk consumer goods have generally declined, particularly in the areas of automobiles, household appliances, furniture, and building materials.
Specific data shows a 15.3% decrease in automobile consumption, a 15.1% decrease in household appliances and audio-visual equipment, a 13.8% decrease in building and decoration materials, a 10.4% decrease in furniture, and a 21.3% decrease in gold and jewelry.
Overall, there is a trend of “subdued major consumption”.
Upon seeing the official consumer data for April, many netizens lamented, “Who dares to splurge carelessly now? Money is too hard to earn.”
Financial blogger “Anxious Cola Pie” recent analysis of the April consumption data, due to “expressing the true feelings of ordinary people,” has sparked a lot of resonance online.
Data shows that in April 2025, social retail sales increased by 5.1% year-on-year, dropping to 1.7% by March 2026, and further slowing to 0.2% in April.
“Anxious Cola Pie” believes that this declining trend is “very dangerous,” with a 0.2% growth rate almost equivalent to no growth. The near-stagnation of consumption reflects weakened income expectations and insufficient consumer confidence among residents, as more and more people start to “dare not spend money.”
Among them, automobile consumption has become an important factor dragging down overall social retail. In April, car consumption dropped by 15.3% year-on-year, becoming one of the sectors with the biggest decline. Sales of fuel vehicles remain sluggish, and the passenger car market has been declining for several consecutive months.
An important detail is emphasized by the National Bureau of Statistics of the Communist Party of China: “Excluding automobiles, consumer growth in April was 1.8%.” This implies that automobile consumption has become a significant factor dragging down overall social retail.
“Anxious Cola Pie” stated that the current issue is no longer “whether cars are affordable” but rather “people simply do not dare to take out loans to buy cars.”
Over the past two years, Chinese car manufacturers have continued to engage in price wars, with prices of many models dropping repeatedly. However, consumers are becoming more cautious. Many are worried about buying a car today only for its price to drop tomorrow, and more concerned about unstable future incomes, fearing what would happen if they cannot repay the loans.
This sentiment is also reflected in consumer credit data. Previous data released by the People’s Bank of China showed a significant decrease in medium to long-term loans among residents, with these loans primarily associated with mortgages, car loans, and other long-term consumer loans.
Aside from automobiles, consumption related to real estate is also experiencing a simultaneous cooling trend.
In April, sales of household appliances and audio-visual equipment decreased by 15%, building and decoration materials by 13.8%, and furniture by 10.4%. These types of consumption have historically been highly dependent on the real estate market.
From new homes, renovations, furniture to air conditioning units, TVs, washing machines, these could collectively drive expenditures amounting to hundreds of thousands of RMB. However, with the real estate market continuing to weaken, the slow pace of new home transactions, and reduced demand for renovations in old homes, directly impacts the entire consumption chain.
The blogger mentioned that many exhibitions, commercial activities, and even mall displays are starting to become more “frugal”. “In the past, when setting up exhibition booths, you wouldn’t miss out on LED screens and light shows; now, many are simply doing minimal setups, just placing a TV and calling it a day.”
This change actually reflects both enterprises and consumers entering a state of “cost-cutting”.
However, not all consumption is decreasing.
Data indicates an 11.7% increase in tobacco and alcohol consumption, a 6.2% increase in communication equipment, and essential goods like grains and oils, medicines, and cosmetics also maintained growth.
“Anxious Cola Pie” humorously remarked, “Under pressure, smoking a cigarette, having a drink, are still necessary.”
Many netizens also believe that amidst increasing employment pressure and economic anxiety, consumption of tobacco and alcohol to some extent represents a form of “emotional release”.
The growth in mobile phones and communication equipment purchases is more aligned with a “necessity.” Even with consumption downgrading, when phones lag or break down, people still need to replace them.
In comparison, what is truly being compressed are those “big-ticket items” that are “nice to have” rather than essential.
Another set of data simultaneously released by the National Bureau of Statistics of the Communist Party of China that is worth noting is that in April, the retail sales of consumer goods for above-quota units decreased by 4.4%, yet the total social retail sales of consumer goods still experienced a minor increase of 0.2%.
The term “above-quota units” mainly refers to large-scale shopping centers, brand chains, and high-end consumer enterprises.
Put plainly, high-end consumption and branded goods are clearly cooling down.
“Anxious Cola Pie” stated, “Before, you bought big brands; now, you buy items for 9.9 yuan including postage.” This popular online phrase is becoming an accurate portrayal of an increasing number of consumers.
He mentioned that many people are not completely refraining from consumption but are starting to prioritize “cheap” and “practical”. The “downgrade in consumption” actually reflects a change in the masses’ expectations for future income.
According to the “Financial Statistics Report for April 2026” published by the People’s Bank of China, household deposits increased by 5.74 trillion yuan in the first four months of this year.
However, more importantly, as reported by Caixin, in April, household deposits decreased by 1.94 trillion yuan, which is about 550 billion yuan more than the same period last year, while deposits in non-banking financial institutions such as securities, funds, and financial management increased significantly by 2.47 trillion yuan, almost 900 billion yuan more than the same period last year.
This indicates that more and more residents are transferring their money from traditional bank accounts to the stock market, funds, and various financial products, rather than leaving them in regular savings accounts.
However, “Anxious Cola Pie” believes that even with funds flowing into the capital market, the stock market’s rise has not significantly boosted consumption. Many people have realized that while the stock market may be surging, there are not many who have actually made significant profits. In contrast to the so-called “wealth effect,” what ordinary people are more concerned about is the stability of their real-life employment, wages, and incomes. The emotions of “fear of not earning money in the future” are increasingly influencing the consumption decisions of more and more ordinary households.
He noted that in the past, people were willing to take out loans to buy houses, cars, or engage in ahead-of-time consumption, but now, more and more people are emphasizing “cash is king”, preferring to save money rather than taking on long-term debts. The core issue behind this remains the uncertainty among residents about future income and economic conditions.