Chinese vehicle sales fall 3% in January

Sales of Chinese-made vehicles, including exports, declined by 3.2% to 2.346 cardinal units successful January 2026 from 2.420 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 declined by astir 16% to 1.665 cardinal units past period from 1,950 cardinal units a twelvemonth earlier, portion exports surged by implicit 45% to 681,000 units. Vehicle accumulation successful the state was somewhat higher astatine 2.450 cardinal units.

With this year’s Lunar New Year holidays falling successful February, China’s conveyance marketplace failed to payment from much moving days past period compared with past year. Many buyers rushed into the marketplace astatine the extremity of past twelvemonth up of the expected reductions successful authorities incentives, earlier the afloat acquisition taxation exemption connected NEVs transitioned to a 50% discount successful January, portion trade-in incentives person besides been reduced.

More recently, measures person been announced to extremity the prolonged “race-to-the-bottom” terms warfare among home manufacturers, which is seen arsenic damaging to the industry’s semipermanent maturation prospects. The Chinese authorities announced it volition nary longer let automakers to merchantability their vehicles astatine beneath the outgo of production.

Sales of Chinese-made caller vigor vehicles (NEVs), comprising chiefly battery-powered and plug-in hybrid vehicles, accrued conscionable somewhat to 945,000 units past month. Domestic income fell by 19% year-on-year to 643,000 units, portion exports doubled to 302,000 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. 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 fixed investment.

GlobalData is forecasting conscionable a flimsy emergence successful airy conveyance income successful the state to 27.3 cardinal units successful 2026, from 26.9 cardinal successful 2025.

Manufacturer performances

SAIC Motor regained its crown arsenic China’s largest conveyance shaper successful January 2026 with planetary income rising by 24% to 327,413units, driven by a 40% emergence successful NEV income to 85,374 units. SAIC-GM-Wuling reported a 37% emergence successful planetary deliveries to 105,477 units, portion SAIC-VW’s income fell by 9% to 68,402 units. SAIC-GM’s income continued to rebound past month, by 29% to 43,502 units, portion the group’s SAIC Motor rider conveyance portion reported a 51% income summation to 77,421 units. The group’s overseas income surged by 52% to 104,529 units.