China Feb NEV sales drop 32% as broader auto market weakens, CPCA data shows

• Exports of passenger NEVs from China surged 124.7% to 269,000 units, providing a strong bright spot for Chinese automakers.
• Retail sales of PHEVs dropped 31.0% year-on-year, marking the eighth consecutive month of year-on-year decline for the category.

China's new energy vehicle (NEV) sales showed a significant decline in February, taking a hit from the Chinese New Year holiday and the scaling back of supportive policies.

Retail sales of NEVs stood at 464,000 units in February, dropping 32.0% year-on-year and down 22.1% from January, according to data released Thursday by the China Passenger Car Association (CPCA).

In the Chinese market, NEVs encompass multiple technological routes. These include battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel-cell vehicles.

Retail sales of BEVs recorded 278,000 units in February, down 34.9% from a year earlier and 20.1% lower than in January.

This marks the second year-on-year decline for BEV retail sales since March 2024. Nevertheless, BEVs accounted for 59.91% of total NEV retail sales in February, up from 58.39% in January.

Retail sales of hybrid models, including PHEVs and extended-range electric vehicles (EREVs), came in at 186,000 units in February, falling 28.0% year-on-year and 25.0% from January.

Excluding EREVs, retail sales of PHEV models were 134,000 units in February, contributing 28.88% to overall NEV retail sales.

PHEV retail sales dropped 31.0% year-on-year, marking the eighth consecutive month of decline for the category, and slid 21.8% from January.

Retail sales of EREVs stood at 52,000 units in February, making up 11.21% of NEV retail sales. The figure decreased 15.6% year-on-year and 31.4% month-on-month.

China's broader passenger vehicle market also faced pressure. Retail sales of passenger vehicles, including sedans, SUVs, and MPVs, totaled 1,034,000 units in February, down 25.4% year-on-year and 33.1% from January.

The penetration rate of NEVs in China's retail market was 44.9% in February. The figure is lower than the 49.5% recorded a year earlier, but higher than January's 38.6%.

Domestic brands showed the strongest NEV retail penetration rate in February, reaching 64.5%. The penetration rate for luxury brands was 32.6%, while mainstream joint venture brands stood at just 4.5%, according to the CPCA.

On the wholesale front, China's passenger NEV wholesale volume was 723,000 units in February, down 13.1% year-on-year and 16.6% from January.

The NEV wholesale penetration rate was 47.6% in February. This is slightly higher than the 47.0% from a year earlier and above January's 43.8%.

The wholesale penetration rate for Chinese domestic NEV brands was 58.9% in February. Luxury brands had a wholesale penetration rate of 48.2%, while mainstream joint ventures were at 4.6%.

The export market provided a strong bright spot for the industry. Exports of passenger NEVs from China reached 269,000 units in February, achieving a year-on-year surge of 124.7%. This accounted for 48.5% of total passenger vehicle exports.

BEVs contributed 58.0% of the total NEV export volume in February, slightly lower than the 59.0% recorded a year earlier.

Smaller vehicles dominated overseas shipments. Exports of A0- and A00-class BEVs accounted for 55.0% of total NEV exports, marginally below the 56.0% from a year earlier.