Chinese vehicle sales fall 15% in February

Sales of Chinese-made vehicles, including exports, declined by implicit 15% to 1.805 cardinal units successful February 2026 from 2.130 cardinal units a twelvemonth earlier, according to rider car and commercialized conveyance wholesale information compiled by the China Association of Automobile Manufacturers (CAAM). Domestic income plunged by 33% year-on-year to 1.133 cardinal units past month, aft rising by 40% to 1.69 cardinal units a twelvemonth earlier, portion exports surged by 52% to 672,000 units. Vehicle accumulation successful the state declined by implicit 20% to 1.672 cardinal units.

China’s home conveyance marketplace is struggling with slowing economical maturation and the caller withdrawal of immoderate authorities subsidies and taxation exemptions for caller vigor vehicles (NEVs). Sales past period were besides affected by importantly less moving days, owed to the Lunar New Year holidays falling successful February this twelvemonth alternatively than January past year.

China’s system expanded by a slower-than-expected 4.5% year-on-year successful the 4th fourth of 2025, slowing from 4.8% successful the 3rd quarter, reflecting sluggish user spending and anemic investment. Full-year GDP maturation was 5%, supported by beardown manufacturing and export maturation contempt the ongoing commercialized tensions with the US.

The authorities precocious introduced caller regulations aimed astatine ending the prolonged “race-to-the-bottom” terms warfare among home manufacturers, which was seen arsenic damaging to the industry’s semipermanent maturation prospects, with automakers nary longer allowed to merchantability their vehicles astatine beneath the outgo of production. To assistance support affordability, manufacturers and dealers are present offering ‘ultra-long-term’ car financing programmes, with repayment presumption of up to 8 years.

In the archetypal 2 months of 2026, Chinese conveyance income declined by astir 9% to 4.152 cardinal units aft rising by 13% to 4.552 cardinal units a twelvemonth earlier, with income of airy rider vehicles falling by astir 11% to 3.524 cardinal units portion commercialized conveyance income roseate by astir 4% to 627,000 units. Domestic income declined by 23% to 2.8 cardinal units successful this period, portion exports surged by implicit 48% to 1.352 cardinal units.

Sales of Chinese-made caller vigor vehicles (NEVs), comprising chiefly battery-powered and plug-in hybrid vehicles, declined by astir 7% to 1,710,000 units successful the archetypal 2 months of the twelvemonth pursuing a 52% emergence to 1,835,000 units a twelvemonth earlier. Domestic NEV income fell by astir 28% to 1,126,000 units, portion exports much than doubled to 584,000 units.

Following past year’s beardown growth, combined with reduced authorities incentives and the recently introduced terms controls, the Chinese home conveyance marketplace looks somewhat saturated, portion user sentiment successful the state besides remains cautious. GlobalData is forecasting conscionable a flimsy emergence successful airy conveyance income successful the state to 27.2 cardinal units successful 2026, aft rising by astir 6% to 26.9 cardinal successful 2025, followed by a 3% diminution to 26.5 cardinal units successful 2027.