Quick Takeaways
- China NEV sales reached 945,000 units in January 2026 with exports hitting a record 302,000 units.
- Domestic demand declined sharply due to seasonal slowdown and new tax adjustments.
China NEV sales remained broadly flat on a year-on-year basis in January 2026, even as domestic offtake softened and overseas shipments climbed to unprecedented levels. Based on CAAM data, total wholesale volumes for new energy vehicles reached 945,000 units. This represented a marginal 0.1% uptick compared with January last year, but a steep 44.74% contraction from December, bringing volumes back below the one-million threshold for the first time since March 2025.
CAAM’s wholesale China NEV sales data captures deliveries from manufacturers to dealers and export channels, encompassing both domestic distribution and international shipments. The NEV classification includes battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles, thereby covering the full electrified portfolio within the China auto market.
Although authorities have renewed trade-in incentives under modified conditions, the transition period has temporarily dampened retail momentum across the China auto market in January 2026, contributing to softer near-term demand dynamics.
China exported 202,000 BEVs in January, representing a 100% year-on-year surge and a 16.9% increase from December. PHEV exports totaled 99,000 units, rising 97.3% year-on-year, though easing 21.8% sequentially. The data underlines sustained global demand for both battery electric vehicle China offerings and plug in hybrid vehicle China models, even amid domestic recalibration.
China’s overall vehicle exports amounted to 681,000 units in January, up 44.9% year-on-year despite a 9.5% month-on-month decline. The continued expansion of Chinese vehicle exports, particularly across electrified segments, illustrates how external demand is increasingly influencing China NEV sales trajectories, even as domestic conditions adjust to fiscal policy changes and seasonal normalization.
CAAM’s wholesale China NEV sales data captures deliveries from manufacturers to dealers and export channels, encompassing both domestic distribution and international shipments. The NEV classification includes battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles, thereby covering the full electrified portfolio within the China auto market.
China NEV Sales Face Domestic Slowdown
Domestic China new energy vehicle sales amounted to 643,000 units in January, reflecting an 18.9% year-on-year decline and a sharp 54.4% drop compared to December. Such sequential weakness is consistent with China’s established automotive seasonality, where year-end promotional pushes and registration cycles typically elevate December volumes, followed by a pronounced moderation at the start of the new year.Tax Changes and Subsidy Transition Impact
The moderation in domestic China NEV sales was compounded by fiscal adjustments implemented from January 2026. Purchasers of new energy vehicles are now required to pay a 5% vehicle purchase tax, replacing the earlier full exemption from the standard 10% rate.- New energy vehicle buyers are subject to a 5% purchase tax from January 2026, replacing the previous full exemption.
- Vehicle trade-in subsidy programs concluded at the end of last year, with revised incentive schemes currently being phased in.
Although authorities have renewed trade-in incentives under modified conditions, the transition period has temporarily dampened retail momentum across the China auto market in January 2026, contributing to softer near-term demand dynamics.
NEV Exports Offset Weak China NEV Sales at Home
In contrast to domestic softness, NEV exports significantly supported overall China NEV sales performance. Export volumes reached a record 302,000 units in January, doubling compared with the same month a year earlier and edging up 0.5% from December. Sustained overseas traction continues to strengthen China’s role as a major global supplier of electrified vehicles.BEV and PHEV Sales Breakdown
On a combined domestic and export basis, battery electric vehicle China volumes totaled 597,000 units in January, marking a 4.0% year-on-year increase but a 46.12% decline from December. Plug in hybrid vehicle China volumes stood at 348,000 units, down 5.9% compared with January last year and 41.9% lower month-on-month.| Category | January 2026 Volume | YoY Change | MoM Change |
|---|---|---|---|
| Total NEV Sales | 945,000 | +0.1% | -44.74% |
| Domestic NEV Sales | 643,000 | -18.9% | -54.4% |
| NEV Exports | 302,000 | +100% | +0.5% |
| BEV Sales (Total) | 597,000 | +4.0% | -46.12% |
| PHEV Sales (Total) | 348,000 | -5.9% | -41.9% |
| BEV Exports | 202,000 | +100% | +16.9% |
| PHEV Exports | 99,000 | +97.3% | -21.8% |
China exported 202,000 BEVs in January, representing a 100% year-on-year surge and a 16.9% increase from December. PHEV exports totaled 99,000 units, rising 97.3% year-on-year, though easing 21.8% sequentially. The data underlines sustained global demand for both battery electric vehicle China offerings and plug in hybrid vehicle China models, even amid domestic recalibration.
Overall Market Performance and NEV Penetration Rate
Total vehicle wholesale volumes in China reached 2.346 million units in January, down 3.2% year-on-year and 28.3% lower than December. Within this aggregate, the NEV penetration rate China stood at 40.3%, higher than the 39.0% recorded a year earlier but below December’s elevated 52.3% level.China’s overall vehicle exports amounted to 681,000 units in January, up 44.9% year-on-year despite a 9.5% month-on-month decline. The continued expansion of Chinese vehicle exports, particularly across electrified segments, illustrates how external demand is increasingly influencing China NEV sales trajectories, even as domestic conditions adjust to fiscal policy changes and seasonal normalization.
Company Press Release
Click above to visit the official source.
Share: