China’s top auto industry body, the China Association of Automobile Manufacturers (CAAM), said at its March briefing that January–February 2026 sales of new‑energy vehicles (NEVs) reached 1.71 million units while production hit 1.735 million, with penetration at 41.2% (and 42.4% in February). Despite year‑on‑year declines in NEV output and sales, CAAM said exports surged to 583,000 units, up more than 110%, underscoring China’s growing EV supply‑chain competitiveness.
CAAM data show NEV production and sales down 8.8% and 6.9% year on year for the two‑month period, indicating softer domestic momentum early in 2026. A retail‑side cross‑check from the China Passenger Car Association (CPCA) put February NEV retail penetration at 44.9%, with domestic brands at 64.5%, luxury at 32.6%, and joint‑venture brands at just 4.5%—a clear sign of structural divergence.
The shift is that penetration stays high even as volume growth slows, while export momentum accelerates sharply. The key next question is whether export strength can offset domestic pressure through Q1 and whether China’s brand‑mix gap widens further as local makers keep the edge in NEV adoption.
