China's Passenger Car Market Declines 17% in Q1; Exports Surge 61%
China's domestic passenger car sales fell by 17.4% in the first quarter, while exports surged by 61.4%, according to the CPCA. The domestic slump is attributed to the late Spring Festival and consumer hesitation ahead of tax policy changes.
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- 📰 Published: April 9, 2026 at 19:08
- 🔍 Collected: April 9, 2026 at 20:00 (52 min after Published)
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The China Automobile Dealers Association Passenger Car Market Information Joint Branch (CPCA) released the March national passenger car market analysis report today.
The report shows that retail sales in China's passenger car market in March were 1.648 million units, a year-on-year decrease of 15%; cumulative retail sales in the first quarter of this year were 4.226 million units, a year-on-year decrease of 17.4%. In contrast, passenger car retail sales in the first quarter of last year were 5.117 million units, which was a 6% growth at the time.
China's overseas car market has continued to boom since the beginning of the year. According to CPCA data, passenger car exports in March were 695,000 units, a massive increase of 74.3% compared to the same period last year; exports in the first quarter of this year were 1.83 million units, a year-on-year increase of 61.4%.
The report also showed that China's passenger car production in the first quarter was 5.742 million units, also a decrease of 9.1% from the same period last year, reflecting the conservative and cautious attitude of car companies towards the market.
The CPCA analyzed that due to the complex impact of market factors and fiscal and tax policy adjustments, the Chinese car market has shown a more obvious characteristic of "low in the beginning, high at the end" in recent years. Interfered by factors such as a later Spring Festival, the decline in domestic retail sales of passenger cars in the first quarter was the result of the superimposed effects of the adaptation period to fiscal and tax policies and the market recovery period around the Spring Festival.
The report mentioned that after the tax exemption policy for new energy vehicle purchases, which was implemented starting September 2014, officially exits at the end of December 2025, the new energy vehicle market in 2026 will be in a tax subsidy adjustment period. Since the beginning of this year, the car market has shown phenomena such as fewer new products, structural changes, cost increases, and channel difficulties. Coupled with the lack of a price reduction wave, the consumer wait-and-see sentiment is obvious. (Editors: Yang Shengru/Chen Chengong) 1150409
The report shows that retail sales in China's passenger car market in March were 1.648 million units, a year-on-year decrease of 15%; cumulative retail sales in the first quarter of this year were 4.226 million units, a year-on-year decrease of 17.4%. In contrast, passenger car retail sales in the first quarter of last year were 5.117 million units, which was a 6% growth at the time.
China's overseas car market has continued to boom since the beginning of the year. According to CPCA data, passenger car exports in March were 695,000 units, a massive increase of 74.3% compared to the same period last year; exports in the first quarter of this year were 1.83 million units, a year-on-year increase of 61.4%.
The report also showed that China's passenger car production in the first quarter was 5.742 million units, also a decrease of 9.1% from the same period last year, reflecting the conservative and cautious attitude of car companies towards the market.
The CPCA analyzed that due to the complex impact of market factors and fiscal and tax policy adjustments, the Chinese car market has shown a more obvious characteristic of "low in the beginning, high at the end" in recent years. Interfered by factors such as a later Spring Festival, the decline in domestic retail sales of passenger cars in the first quarter was the result of the superimposed effects of the adaptation period to fiscal and tax policies and the market recovery period around the Spring Festival.
The report mentioned that after the tax exemption policy for new energy vehicle purchases, which was implemented starting September 2014, officially exits at the end of December 2025, the new energy vehicle market in 2026 will be in a tax subsidy adjustment period. Since the beginning of this year, the car market has shown phenomena such as fewer new products, structural changes, cost increases, and channel difficulties. Coupled with the lack of a price reduction wave, the consumer wait-and-see sentiment is obvious. (Editors: Yang Shengru/Chen Chengong) 1150409