China's Auto Market Sees Domestic Sales Drop and Export Surge in Q1 2026, with NEV Sales Plunging Year-on-Year

In the first quarter of 2026, retail sales of passenger vehicles in China's domestic market totaled 4.226 million units, down 17.4% year-on-year. Of this, new energy passenger vehicle (NEV) retail sales reached 1.908 million units, a year-on-year decline of 21.1%, accounting for a market penetration rate of 45%—a decrease of 2.2 percentage points compared to the same period last year. Meanwhile, retail sales of fuel-powered passenger vehicles amounted to 2.318 million units, down 14% year-on-year. In the same period, passenger vehicle exports surged to 1.83 million units, up 61.4% year-on-year.