China Car Sales Drop 2.5% in April

China’s total vehicle sales fell 2.5% year-on-year to 2.834 million units in April 2026, following a 0.6% decline in the previous month, marking the fifth consecutive month of decline, according to data from the China Association of Automobile Manufacturers (CAAM). Meanwhile, new energy vehicle (NEV) sales rose 9.7% year-on-year in April, accelerating from a 1.2% gain in March. For the first four months of the year, total car sales declined 4.8% year-on-year, sharply reversing a 10.8% increase in the same period in 2025, while NEV sales edged up 0.1% over the period. Last year, China’s vehicle sales climbed 9.4% year-on-year to a record high of 34.4 million units, accelerating sharply from 4.5% in the previous year, with NEV sales soaring 28.2%

China’s total vehicle sales fell 0.6% year-on-year to 2.899 million units in March 2026, after a downwardly revised 15.2% plunge in the previous month, according to data from the China Association of Automobile Manufacturers (CAAM). February sales slumped as volumes were affected by significantly fewer working days due to the Lunar New Year holidays falling in February this year rather than January last year. Of that total, overall vehicle exports surged 72.7% yoy to 875 thousand units. Meanwhile, new energy vehicle (NEV) sales rose 1.2% yoy in March, accounting for 43.2% of new car sales. For the first quarter of the year, car sales dropped 5.6% yoy, sharply reversing an 11.2% jump in the same period in 2025, with NEV sales declining 3.7% in Q1 2026. However, car sales surged 60.6% from a month earlier. In 2025, China’s vehicle sales grew 9.4% year-on-year to a record high of 34.4 million units, accelerating from 4.5% in the previous year, with NEV sales surging 28.2%.

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.