EV Sales Plunge Then Rebound Sharply in First Week of 2026

China's new energy vehicle (NEV) market in 2026 started with an initial dip followed by a strong rebound. Affected by factors such as the phasing out of government subsidies, retail sales during the first week (January 1–11) totaled only 117,000 units, down 38% year-over-year, with the NEV penetration rate dropping to 35.5%. However, the market quickly recovered: sales in the third week (January 12–18) rose to 195,000 units, up 7% year-over-year, and the penetration rate rebounded to 55.6%. Total sales for the first three weeks reached 312,000 units, with a year-to-date penetration rate of 46.0%, an increase of 6.6 percentage points compared to the same period last year. Analysts note that the early-year volatility is a normal phenomenon during the policy transition period and does not alter the long-term growth trajectory of the NEV market.