China NEV retail sales drop 16% year-on-year to 312,000 units in Jan 1-18

From January 1 to 18, China's total passenger vehicle retail sales came in at 679,000 units, down 28% compared to the same period last year.NEV retail penetration in China stood at 45.95% during the January 1-18 period.(A Chery iCar V23 displayed at the Shanghai auto show in April 2025. Image credit: CnEVPost)The decline in China's new energy vehicle (NEV) retail sales last week narrowed, easing the slide so far this month.Passenger NEV retail sales in China came in at 312,000 units during January 1-18, down 16% year-on-year and down 52% month-on-month, according to data released Wednesday by the China Passenger Car Association (CPCA).Wholesale sales of passenger NEVs in China totaled 348,000 units during January 1-18, down 23% year-on-year and down 46% month-on-month. Join us on Telegram or Google News From January 1 to 18, China's total passenger vehicle retail sales were 679,000 units, down 28% year-on-year and down 37% month-on-month.This indicates that China's NEV retail penetration rate stood at 45.95% during the January 1-18 period.Entering 2026, Chinese consumers have pay a 5% vehicle purchase tax on NEVs, rather than the previous full exemption from the 10% tax.Additionally, China's previous round of vehicle trade-in subsidies has expired, and new subsidies have not yet become fully available nationwide, though the country will continue offering trade-in subsidies this year.The vehicle purchase tax exemption policy has just ended, and currently only some provinces and cities have begun implementing trade-in subsidies, the CPCA noted.As subsidy details and application channels are fully launched across cities, coupled with the gradual release of purchasing power before the Spring Festival, the market will gradually improve, CPCA said.From January 1-11, China's daily average passenger vehicle retail sales were 29,818 units, down 32% year-on-year and down 42% compared to the same period last year.From January 12-18, China's daily average passenger vehicle retail sales were 50,171 units, down 22% year-on-year and 31% month-on-month.From January 1-18, China's total passenger vehicle wholesale sales amounted to 740,000 units, down 35% year-on-year and down 30% month-on-month.From January 1 to 11, China's average daily wholesale sales of passenger vehicles were 34,645 units, down 40% year-on-year and down 30% month-on-month.From January 12 to 18, China's average daily wholesale sales of passenger vehicles were 51,248 units, down 28% year-on-year and down 30% month-on-month. CAAM forecasts China NEV sales to grow 15.2% to 19 million units in 2026 The CAAM projects China's overall passenger vehicle sales will reach 34.75 million units in 2026, representing a 1% year-on-year increase.