- China’s NEV retail sales declined sharply in February due to holiday disruptions and reduced policy support.
- Exports of Chinese new energy vehicles surged strongly despite domestic market weakness.
China Passenger Car Association NEV sales data revealed a sharp slowdown in February as seasonal disruptions and reduced incentives impacted the domestic electric vehicle market. Retail sales of new energy vehicles (NEVs) reached 464,000 units during the month, reflecting a significant year-on-year and month-on-month contraction. According to the China Passenger Car Association, the decline was largely influenced by the Chinese New Year holiday period, which typically disrupts vehicle purchasing activity and temporarily weakens market demand across the passenger car sector.
February NEV Sales Performance
Retail sales of NEVs in China totaled 464,000 units in February, representing a 32.0% decline compared with the same period last year and a 22.1% drop from January levels. NEVs in the Chinese market include battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel-cell vehicles. The contraction highlights how seasonal demand fluctuations and evolving subsidy structures continue to influence short-term performance within the rapidly expanding electric mobility ecosystem.
| Category | February Sales | YoY Change | MoM Change |
|---|---|---|---|
| Total NEV Retail Sales | 464,000 | -32.0% | -22.1% |
| Battery Electric Vehicles | 278,000 | -34.9% | -20.1% |
| Hybrid Vehicles (PHEV + EREV) | 186,000 | -28.0% | -25.0% |
Battery Electric Vehicles Remain Dominant
Battery electric vehicles continued to represent the largest share of the NEV market. BEV retail sales reached 278,000 units in February, marking a 34.9% decline year-on-year and a 20.1% fall from January levels. Despite the downturn, BEVs accounted for nearly 59.9% of total NEV retail sales during the month, slightly improving their share compared with January. The data also marked only the second year-on-year decline for BEV retail volumes since March 2024.
Hybrid and Extended-Range Vehicles
Hybrid vehicles, including plug-in hybrids and extended-range electric vehicles (EREVs), recorded retail sales of 186,000 units in February. PHEV sales alone reached 134,000 units and represented 28.88% of total NEV retail demand. However, PHEV volumes dropped 31.0% year-on-year, extending an eight-month sequence of declines. EREV sales totaled 52,000 units, accounting for 11.21% of NEV retail sales and reflecting both annual and monthly contractions.
Passenger Vehicle Market and Export Growth
China’s broader passenger vehicle market also weakened during February. Retail sales of passenger vehicles, including sedans, SUVs, and MPVs, reached 1.034 million units, falling 25.4% year-on-year and 33.1% compared with January. NEV penetration in the retail market stood at 44.9%, lower than the 49.5% recorded a year earlier but higher than January’s 38.6%. Despite domestic softness, exports remained strong, with passenger NEV shipments reaching 269,000 units, a 124.7% year-on-year surge that accounted for nearly half of China’s total passenger vehicle exports.
Smaller electric models dominated overseas demand, with A0- and A00-class battery electric vehicles representing about 55% of total NEV export volumes, indicating continued global appetite for compact and affordable Chinese electric vehicles.
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