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China's Car Sales Plunge 15% Amid Economic Shift

3/12/2026

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Story summary
  • China's domestic passenger car sales fell 15.4% year-on-year in February to 950,000 units.
  • The decline was driven by the phasing out of trade-in subsidies, a slowing economy, and the Lunar New Year.
  • Vehicle deliveries declined by 15%.
  • Electric and hybrid car sales decreased by 14%.
  • Exports surged by 52% as BYD and Geely expanded into new markets, with analysts predicting a shift toward exports and high-end models.