Auto Production and Sales Dip in Jan-Feb, but New Energy B-Class Vehicles Surge

According to data released by the China Association of Automobile Manufacturers (CAAM) on March 11, China produced 4.122 million vehicles and sold 4.152 million vehicles in January–February 2026, representing year-on-year declines of 9.5% and 8.8%, respectively. The overall market faced downward pressure due to factors including policy adjustments, the timing shift of the Spring Festival holiday, and weak consumer sentiment. Among conventional fuel-powered vehicles, sales of Class-A models dropped by 8.4% year-on-year. In contrast, Class-B new energy passenger vehicles stood out, with cumulative sales reaching 506,000 units, up 9.4% year-on-year. This highlights consumers’ growing preference for mid-to-high-end, long-range, and intelligent new energy vehicles, indicating a market shift from "policy-driven" to "product-driven" growth. During the same period, new energy vehicles accounted for 41.2% of total new vehicle sales. Although production and sales of new energy vehicles saw a slight year-on-year decline in January–February, the trend toward structural upgrading remained evident.