January Passenger Vehicle Retail Sales Drop 13.9% YoY, New Energy Exports Surge Over 100%

According to data from the Passenger Car Association (CPCA), retail sales of passenger vehicles nationwide reached 1.544 million units in January 2026, down 13.9% year-over-year, continuing the typical seasonal pattern of relatively low January sales in recent years. The new energy vehicle (NEV) retail penetration rate stood at 38.6% in January, a 3-percentage-point decline from the same period last year. Among these, domestic brands achieved an NEV penetration rate of 61.7%, while joint-venture brands lagged significantly at only 4.3%. NEV exports performed strongly, reaching 286,000 units—up 103.6% year-over-year—and accounting for 49.6% of total passenger vehicle exports. Leading exporters included BYD, Tesla China, and Geely. On the domestic wholesale front, 16 automakers each sold over 10,000 NEVs in January, collectively capturing 90.3% of the market. Looking ahead to February, sales are expected to hit their lowest point of the year due to the shortened effective production and sales window caused by the extended Chinese New Year holiday. Coupled with rising raw material costs, limited room remains for post-holiday NEV price reductions, which could temporarily dampen consumer demand.