Chongqing - On May 1, the first day of the May Day holiday, Chongqing’s Longfor Times Paradise Walk, a key commercial hub, saw strong foot traffic, with car showrooms emerging as a major draw as visitors continuously entered stores to browse vehicles.

Bridging News visited several auto showrooms, including Harmony Intelligent Mobility Alliance (HIMA), Avatr, and Tesla, and observed steady visitor flow across all stores, with the HIMA showroom drawing particularly strong foot traffic.

Various Aito models are displayed at a HIMA showroom at Longfor Chongqing Times Paradise Walk on May 1. (Photo/Luo Huxin)

HIMA is an auto brand jointly developed by Huawei and automakers including Seres, Chery, and JAC. When Bridging News arrived at the showroom, consumers were seen actively consulting sales staff for detailed information on vehicle configurations and discounts.

In one showroom, a father and son drew attention. The father, Mr. Wang (a pseudonym), said he had been considering replacing his car since last year but had been too busy with work, so he used the holiday to explore the market. He added that his main reason for visiting the HIMA showroom was to accompany his son to see the Aito M9.

Sitting in the driver’s seat of an Aito M9 and exploring its in-car features was Mr. Wang’s 11-year-old son. A self-proclaimed “little fan” of Aito, he appeared well-versed in the brand, confidently mentioning models such as the M9 and M8.

"I don't know where he learned all this, probably from various shorts online," Mr. Wang said with a smile. "Bringing him here today is to let him experience the ride and to show him the price, so he could know that this car is a financial burden for us."

The Aito M9 positions as a 500,000-yuan luxury car and previously won the annual sales championship in this segment for 2025.

Despite the crowds of car shoppers, relatively few consumers were seen entering the price negotiation or ordering stages. Bridging News observed only one purchase being made, at the Tesla showroom.

Mr. Li (a pseudonym), who visited one showroom, told Bridging News that he has been driving a traditional fuel vehicle for years and, although he plans to replace it, the need is not urgent—his visit was mainly driven by curiosity.

A salesperson at the store also acknowledged that actual car purchases during the period were limited, noting that consumers’ buying intentions may be affected by current economic expectations.

Domestic market faces downward pressure amid policy shifts

A customer explores in-car features at an Avatr showroom in Chongqing. (Photo/Luo Huxin)

The "more looking, less buying" situation at the showrooms is a microcosm of the current downward pressure on the domestic auto market. 

According to the China Association of Automobile Manufacturers (CAAM), domestic auto sales in China reached 4.823 million units in Q1 2026, down 20.3% year-on-year.

For general consumers, family or personal travel usually involves passenger vehicles, which include sedans, MPVs, and SUVs. In terms of passenger vehicles, domestic sales in Q1 were 4.013 million units, down 23.4%.

The new energy vehicle (NEV) sector, which was originally a key driving force in the domestic passenger vehicle market, is now showing weak performance, with Q1 domestic sales of 1.822 million units, a drop of 26.7%.

Up to now, domestic auto market demand has yet to fully recover. According to the China Passenger Car Association, from April 1 to 26, market retail sales reached 1.004 million units, down 24% year on year and down 19% compared to the same period last month. Cumulative retail sales so far this year stand at 5.226 million units, down 19%.

CAAM’s March report attributes the market slowdown mainly to policy changes, earlier-than-usual demand, and a high base effect from the previous year.

Market analysis shows that the primary policy adjustment involves the 2026 transition from a full NEV purchase tax exemption to a 50% reduction, which directly raised acquisition costs for consumers.

Consequently, a surge of buyers rushed to secure vehicles in late 2025 to seize policy dividends. This trend inflated the year-end sales base while overdrawing market demand for early 2026.

Furthermore, the expansion of subsidies and continued tax exemption policy in early 2025 created a high baseline. This previous year's growth has impacted the year-on-year growth figures for 2026 Q1.