CPCA

January's NEV penetration rate fell to 44.4%, with CPCA anticipating this will mark a cyclical low point.

From January 1 to 18, China's total passenger vehicle retail sales came in at 679,000 units, down 28% compared to the same period last year.

Additional vehicle purchase tax costs kicking in and the transition of trade-in subsidies are putting pressure on NEV sales at the start of the year.

Both BYD and Tesla saw year-on-year declines in their 2025 retail sales in China.

NEV retail penetration in China reached 60.4% in December, surpassing the 60% mark for the first time.

Cumulative wholesale sales of passenger NEVs reached 15.33 million units in 2025, marking a 25% year-on-year increase.

From December 1 to 28, China's overall passenger vehicle retail sales totaled 1.928 million units, down 17 percent year-on-year.

Battery makers are expected to cut production and take holidays in early 2026 to respond to demand fluctuations, the CPCA head said.

From December 1 to 21, China's overall passenger vehicle retail sales totaled 1.3 million units, down 19 percent year-on-year.

China's overall passenger car retail sales in December are projected to come in at about 2.3 million units, marking a year-on-year decline of 12.7 percent.