China’s total vehicle sales declined 15.4% year-on-year to 1.801 million units in February 2026, following a 3.2% fall in the previous month, according to data from China Association of Automobile Manufacturers. This marked the sharpest drop since February 2024, as the end of a tax break for electric vehicles and reduced government subsidies amplified the usual slowdown in demand during the Lunar New Year holiday period. Sales of new energy vehicles (NEVs) dropped 14% to 765 thousand units, highlighting continued weakness in demand for new-energy cars. Sales at home plunged 34.2% to 950 thousand units, partially offsetting a 58% surge in exports, which totaled 586 thousand units. For the January-February period, total vehicle sales were down 10.7%, with domestic sales falling 26% while exports jumped 54%. However, the ongoing conflict in the Middle East has clouded the outlook for exports, as the region accounted for around one-fifth of China’s vehicle exports last year.

China’s total vehicle sales declined 15.4% year-on-year to 1.801 million units in February 2026, following a 3.2% fall in the previous month, according to data from China Association of Automobile Manufacturers.

This marked the sharpest drop since February 2024, as the end of a tax break for electric vehicles and reduced government subsidies amplified the usual slowdown in demand during the Lunar New Year holiday period.

Sales of new energy vehicles (NEVs) dropped 14% to 765 thousand units, highlighting continued weakness in demand for new-energy cars.

Sales at home plunged 34.2% to 950 thousand units, partially offsetting a 58% surge in exports, which totaled 586 thousand units.

For the January-February period, total vehicle sales were down 10.7%, with domestic sales falling 26% while exports jumped 54%.

However, the ongoing conflict in the Middle East has clouded the outlook for exports, as the region accounted for around one-fifth of China’s vehicle exports last year.