February Auto Retail Sales Under Pressure: Over 70% of Dealers Miss Sales Targets

The China Automobile Dealers Association (CADA) noted that retail sales of automobiles in February 2026 faced significant pressure. Due to the Spring Festival holiday, the number of effective sales days decreased sharply, and foot traffic at dealerships dropped substantially. Compounding these challenges were pre-holiday inventory clearance efforts, adjustments to the new-energy vehicle purchase tax policy, and heightened consumer anticipation of discounts during upcoming spring auto shows—all of which intensified a "wait-and-see" sentiment among buyers. According to a survey, 76.8% of dealers reported February sales below expectations. Furthermore, since the implementation of the "Compliance Guidelines for Pricing Practices in the Automotive Industry," 25.6% of dealers indicated some relief from price inversions (selling below cost), but over 70% reported no noticeable change. Only 20.7% of dealers achieved improved profitability.