Data from the Passenger Car Association shows that from April 1 to 6, retail sales in the national passenger vehicle market reached 149,000 units, a decrease of 29% compared to the same period last year and down 20% from the previous month. During the same period, wholesale sales by passenger vehicle manufacturers totaled 153,000 units, falling 28% year-on-year and 17% month-on-month.
In the new energy vehicle segment, retail sales from April 1 to 6 reached 86,000 units, down 24% compared to the same period last year but up 3% from the previous month. Wholesale sales of new energy vehicles by manufacturers stood at 73,000 units, declining 39% year-on-year and 14% month-on-month.
The penetration rate of new energy vehicles in retail sales was 57.7%, while the wholesale penetration rate reached 47.5%. In terms of production, pure fuel light vehicle output in the first week of April was 176,000 units, down 6% year-on-year but up 7% from the previous month. Combined production of hybrid and plug-in hybrid vehicles reached 85,000 units, increasing 16% year-on-year and 60% month-on-month.
Daily average retail sales in the first week of April were 25,000 units, down 29% year-on-year and 20% month-on-month. The Qingming Festival holiday reduced effective sales and registration time, while post-quarter-end sales momentum slowed, contributing to weaker retail performance. Rising international oil prices and stock market declines have increased vehicle ownership costs and reduced household wealth, further dampening consumer purchasing enthusiasm.
Structurally, new energy retail sales of 80,000 units fell only 3% month-on-month, outperforming the overall market with strong resilience. The high penetration rate of 57.7% indicates solid electrification trends. Retail demand remains in a consolidation phase, but stabilization and recovery are expected later in the month with the Beijing Auto Show and new model launches.
From January to March, 1.408 million subsidy applications were received for vehicle replacement programs, including 403,000 for scrappage and 1.005 million for trade-ins. Regional variations exist, with measures like Shandong's lottery system helping stabilize purchase rhythms. Additional consumer subsidies are anticipated to support auto sales.
Wholesale performance mirrored retail weakness, with daily average wholesale of 25,000 units in the first week of April, down 28% year-on-year and 17% month-on-month. Limited new models, stable prices, and cautious consumer sentiment prevailed. Dealers maintained higher inventories post-Q1, leading to slower restocking. Manufacturers are adopting prudent production strategies amid demand softness.
The larger year-on-year decline in new energy wholesale sales reflects manufacturers' efforts to avoid inventory buildup. The wholesale penetration rate of 47.5%, lower than retail penetration, indicates focus on destocking rather than pushing inventory. Both retail and wholesale segments started weakly, but recovery is expected by mid-to-late April as demand improves and inventory pressure eases.
Since 2025, promotional activities in the passenger vehicle market have rationalized, with market order significantly improved. In March 2026, 18 models saw price reductions, 7 fewer than the same period last year. Average price cuts for new energy vehicles reached 12% of the average price, while conventional fuel vehicles saw average reductions of 12.5%. Promotional levels for new energy vehicles remained at medium-high levels, while fuel vehicle promotions stabilized around 23%.
China's auto exports showed strong growth, with self-branded overseas sales reaching 720,000 units in January-February 2026, up 66% year-on-year. Market share varies significantly by region, with notable presence in Southern Hemisphere (18%), Europe (10%), Southeast Asia, and Middle East (around 10%). New energy vehicles accounted for 27% of overseas sales, with particularly strong performance in Europe (16%), Southern Hemisphere (83%), and Southeast Asia/West Asia (51%). Russian market performance was exceptional, while shares in EU, Japan, South Korea, and US remained minimal.
Global auto sales reached 13.96 million units in January-February 2026, with new energy vehicles accounting for 2.68 million units and 19.3% share. China's share of global new energy passenger vehicles reached 60%, with 54% in pure electric and 72% in plug-in hybrid segments. Hybrid vehicle share recovered to 18.3% globally.
Used vehicle transactions totaled 3.03 million units in January-February 2026, up 6% year-on-year. February alone saw 1.301 million transactions, down 25% month-on-month and 6.5% year-on-year. New energy used vehicle transactions reached 107,000 units in February, declining 32% month-on-month but rising 8% year-on-year, with penetration reaching 11%. Cumulative January-February new energy used vehicle transactions were 265,000 units, up 40% year-on-year.
While China's used vehicle market ratio remains lower than advanced international markets, development potential is substantial. The growth of new energy vehicles provides cost advantages for consumers. Despite temporary slowdown in scrappage policy support, vehicle replacement programs are expected to show strong growth in 2026.
Comments