- January's NEV penetration rate fell to 44.4%, with CPCA anticipating this will mark a cyclical low point.
- The CPCA projects China's overall passenger vehicle retail sales for January to total about 1.8 million units, a 0.36% year-on-year increase but a 20.4% decline from December.
China's new energy vehicle (NEV) retail sales in January are estimated at about 800,000 units, contributing 44.4% to overall passenger vehicle retail sales, the China Passenger Car Association (CPCA) said in a Thursday report.
This represents a 7.52% year-on-year increase but a 40.16% month-on-month decline, CnEVPost calculations show.
This performance is weak considering last year's Chinese New Year holiday occupied four working days in late January, while this year's holiday falls in late February.
CPCA projects China's overall passenger vehicle retail sales for January at about 1.8 million units, reflecting a 0.36% year-on-year increase but a 20.4% decline from December.
The latest survey results indicate that automakers accounting for nearly 80% of total market sales have set this month's retail targets at levels equal to or slightly higher than last year's, the CPCA said.
The continuation and optimization of automotive support policies are expected to underpin the market throughout the year. However, the market is currently navigating a critical period of policy transition and adjustment in the short term, the report noted.
Entering 2026, China's NEV purchase tax has shifted from full exemption to half the standard rate, leading to heightened consumer wait-and-see sentiment, according to CPCA.
Additionally, cold weather in January impacted the market, with penetration rates expected to hit a cyclical low this month, the report said.
In December, China's NEV penetration rate stood at 59.1%, slightly below November's record high of 59.4%.
China has extended its vehicle trade-in subsidies, though the ongoing transition period continues to influence the overall market.
CPCA's weekly data shows significant sales declines during the first and second weeks of this month, followed by gradual improvement.
