China’s February auto sales fall about 15% as domestic demand weakens and exports surge

China’s auto industry association CAAM said on March 11 that February 2026 wholesale vehicle sales fell about 15% year on year to roughly 1.8 million units, with domestic sales down about 34% and exports up roughly 58%—a sharp split that underlines how fragile home demand remains.

CAAM and multiple outlets pointed to Lunar New Year timing and policy changes as the main drivers: February had only about 16 effective working days, and the phase‑out of EV purchase tax breaks and trade‑in subsidies weighed on showroom traffic. Domestic sales dropped to roughly 950,000 units, showing the holiday hit was amplified by the incentive roll‑off.

Exports moved the other way. Shipments climbed to around 590,000 units, up about 52–58% year on year depending on the source, giving automakers a rare buffer against the domestic slump and reinforcing the industry’s growing reliance on overseas demand.

On the retail side, CPCA data shows the slowdown is also visible in new‑energy vehicles. February NEV retail sales fell about 32% year on year to 464,000 units, a reminder that CAAM’s wholesale numbers and CPCA’s retail metrics capture different parts of the market and can diverge.

With total wholesale sales at about 1.8 million and domestic deliveries near 950,000, the February mix highlights a two‑track market: weak local demand meeting stronger export momentum. That divergence raises the stakes for 2026 pricing discipline, inventory planning, and how quickly OEMs can rebalance between the home market and overseas growth.