China Passenger Car Association: In March, the retail sales of new energy vehicles fell by 14.4% year-on-year, and competition in the mid-to-high-end market is expected to intensify this month

The China Passenger Car Market Information Joint Conference announced that in March, the national retail sales of passenger cars reached 1.648 million units, a year-on-year decrease of 15.0% and a month-on-month increase of 59.4%. Cumulative retail sales in the first quarter of this year totaled 4.226 million units, a year-on-year decrease of 17.4%. The overall performance of the passenger car market in the first quarter of 2026 was slightly better than expected, mainly due to the decline in retail sales in the mainland being affected by the adjustment period of fiscal and tax policies and the recovery period of the market before and after the Spring Festival. In March, the production of new energy passenger cars reached 1.123 million units, a year-on-year decrease of 3.8% and a month-on-month increase of 74.3%. Cumulative production of new energy passenger cars in the first quarter of this year reached 2.708 million units, a year-on-year decrease of 7.6%.

Data shows that in March, the retail sales of new energy passenger cars were 848,000 units, a year-on-year decrease of 14.4% and a month-on-month increase of 82.6%. In the first quarter of this year, retail sales of new energy passenger cars totaled 1.908 million units, a year-on-year decrease of 21.1%. In March, manufacturers exported 349,000 new energy passenger cars, a year-on-year increase of 139.9% and a month-on-month increase of 29.6%. In the first quarter of this year, manufacturers exported 908,000 new energy passenger cars, a year-on-year increase of 123.7%.

Looking ahead to the national passenger car market in April, the Passenger Car Association stated that there are 21 working days in April this year, one day less than the 22 working days in April 2025, and it is expected that the production and sales of the car market will continue to slowly recover. As domestic automakers have a new energy sales ratio exceeding 70% in the mainland market, the export of new energy vehicles will further accelerate, and the differentiation in the car market will intensify.

At the same time, with the "May Day" holiday allowing free highway travel for private cars, the attention on the car market during the Beijing Auto Show is rising, and the early release of new cars is expected to lead to a good trend in consumer upgrades and car purchases in April. With the continued high growth of new energy vehicles, competition in the mid-to-high-end segments is becoming increasingly fierce, while the market for economical electric vehicles is shrinking sharply, making the mid-to-high-end track more crowded, and structural growth in the car market is difficult to withstand the pressure of overall growth