|
Only 950,000 units of passenger cars were sold in China last
month, according to the China Association of Automobile
Manufacturers, down from nearly 1.4 million vehicles sold in
January. It was the fourth straight month of year-on-year
declines.
Overall passenger car sales including exports dropped 15.4%
year-on-year, even as shipments overseas jumped 58% to 586,000,
highlighting the challenges for Chinese carmakers trying to
offset sluggish domestic sales by expanding into foreign
markets.
Automakers have been struggling with weak demand as some local
governments have been phasing out trade-in subsidies to
encourage purchases of electric vehicles. Chinese consumers have
also been steering clear of big purchases, feeling a pinch from
a slowing economy and protracted property slump.
The Lunar New Year festival, China’s biggest holiday, took place
in February, which also likely hurt sales.
Domestic car sales in China will likely continue to weaken this
year due to the reductions of government subsidies, said Chris
Liu, a Shanghai-based senior analyst at advisory group Omdia.
Chinese automakers make far more vehicles than the home market
can absorb and that has led to a fierce price war as they
compete for market share.
BYD, which overtook Tesla in 2025 as the world’s biggest EV
maker, said its sales fell 41% in February from a year earlier
to 190,190 vehicles. Geely Auto, another Chinese auto group,
reported a modest 1% rise in sales in February to 206,160.
To help offset domestic weakness, Chinese carmakers will
continue to boost exports this year, analysts said.
China's overall passenger car exports could grow roughly 20% in
2026 from last year, according to Yichao Zhang, a partner at
AlixPartners. Developing regions such as Southeast Asia are key
markets for Chinese automakers seeking to expand sales.
Chinese vehicle manufacturers are likely adapt by cutting costs
and shifting toward more high-end models with bigger profit
margins, said Claire Yuan, director of corporate ratings for
China autos at S&P Global Ratings.
All contents © copyright 2026 Associated Press. All rights reserved
|
|
