China Passenger Car Market February 2026: Sales, Production and NEV Trends

The China Passenger Car Association (CPCA) released detailed statistics outlining the performance of the China passenger car market February 2026, covering retail sales, wholesale shipments, production, and new energy vehicle activity. The data includes sedans, sport utility vehicles, and multipurpose vehicles while excluding minivans. February reflected a significant slowdown in retail demand compared with the previous year, largely influenced by policy adjustments and seasonal factors following the Spring Festival period. Despite the decline in domestic sales volumes, export performance remained strong and the market showed structural shifts toward higher-end new energy vehicles.

Retail Sales Performance and Brand Market Shares

Retail sales of passenger cars in February totaled 1.034 million units, representing a year-over-year decline of 25.4%. Cumulative retail sales for the first two months of 2026 reached 2.578 million units, down 18.9% compared with the same period of the previous year. The reduction reflects weaker consumer demand after the expiration of earlier vehicle purchase tax incentives, which had previously stimulated strong buying activity.

Luxury vehicles recorded retail sales of approximately 130,000 units during the month, declining 12% year over year. Domestic brands collectively sold 630,000 vehicles, down 30% from the previous year, while maintaining a dominant market share of 61.2%. Although their share dropped by 4.3 percentage points, Chinese brands continued to benefit from expanding new energy vehicle adoption and rising export volumes.

Performance of Joint Venture Brands

Mainstream joint venture manufacturers recorded retail sales of about 270,000 units, representing a 19% year-over-year decrease. Despite the contraction in sales, some foreign brands improved their relative market positions. German brands accounted for 18.2% of the retail market, increasing by 1.2 percentage points. Japanese brands held 12.1% market share, rising 1.5 percentage points, while American brands reached 6.8%, up 1.8 percentage points compared with the previous year.

Wholesale Shipments and Production Output

Wholesale passenger car shipments totaled 1.518 million units in February, reflecting a 14.3% year-over-year decrease. Domestic automakers shipped around 1.074 million vehicles to dealers, declining 14% from the previous year. Mainstream joint-venture manufacturers delivered approximately 283,000 units, representing a sharper drop of 20%. Luxury vehicle wholesale volumes reached 161,000 units, showing a smaller reduction of about 2% year over year.

Passenger car production during the month reached 1.373 million units, down 21% compared with the same month in the previous year. Production declines were recorded across all major segments. Luxury brand production fell by 9%, while both joint venture brands and domestic brands experienced larger decreases of around 22%. The slowdown was partly attributed to weaker seasonal demand and adjustments in production planning following the holiday period.

New Energy Vehicle Market Breakdown

The new energy vehicle segment remained one of the most important components of the China passenger car market February 2026. Wholesale shipments of new energy passenger cars totaled approximately 723,000 units, representing a year-over-year decline of 13.1%. Battery electric vehicles accounted for 421,000 units, plug-in hybrid vehicles reached 246,000 units, range-extended electric vehicles totaled 55,000 units, and hybrid vehicles with internal combustion engines recorded 52,000 units.

Within the battery electric vehicle segment, midsize B-class models demonstrated the strongest growth, reaching 147,000 units and increasing 16% year over year. These vehicles represented about 35% of BEV shipments. Smaller A0-class vehicles accounted for 29% of BEV volume, while compact A-class vehicles represented roughly 20%. Micro vehicles in the A00 category experienced the steepest decline, falling 61% compared with the previous year.

Leading NEV Manufacturers

Sixteen manufacturers recorded monthly wholesale new energy passenger car volumes exceeding 10,000 units, representing more than 90% of the total market. BYD led with 187,782 units, followed by Geely with 117,488 units and Tesla China with 58,599 units. Other major players included Changan Auto, Chery, Leapmotor, SAIC-GM-Wuling, Li Auto, and SAIC Motor Passenger Vehicle. The concentration of production among these leading manufacturers highlights the growing competitiveness and scale of China's electric vehicle ecosystem.

Export Growth and Market Outlook

Exports of new energy passenger cars continued to expand rapidly. In February alone, 269,000 vehicles were shipped overseas, representing a year-over-year increase of 124.7%. Battery electric vehicles accounted for 58% of export volumes, while A0- and A00-class electric models represented approximately 55% of exported vehicles. Cumulative exports for the first two months of 2026 reached 559,000 units, more than doubling compared with the previous year.

Chinese automakers have been strengthening their export logistics capabilities by investing in self-operated shipping fleets. This strategy helps secure transport capacity, reduce logistics costs, and improve efficiency amid global shipping disruptions linked to geopolitical tensions. As a result, manufacturers are increasingly able to maintain export momentum even during periods of international supply chain uncertainty.

Top Passenger Car Manufacturers by Retail Sales

Several manufacturers maintained strong positions in the domestic market despite overall demand contraction. The following table shows the leading passenger car manufacturers ranked by February retail sales volumes.

Looking ahead, industry expectations indicate a rebound in production and sales during March as economic activities resume after the Spring Festival holiday period. With 22 working days in March 2026, one more than the previous year, monthly vehicle output and deliveries are expected to rise significantly. Although policy adjustments temporarily reduced domestic demand, ongoing electrification, export expansion, and growing competitiveness of Chinese automakers suggest the market will gradually return to stable growth.