On March 11, the latest data released by the China Association of Automobile Manufacturers (CAAM) showed that despite a decline in overall auto production and sales in February due to short-term factors, new energy vehicle (NEV) exports continued their high-growth momentum, with a year-on-year increase of more than 100%, becoming a bright spot in an otherwise sluggish market.

Data released by CAAM on March 11 showed that in February 2026, China's auto production and sales reached 1.672 million units and 1.805 million units, respectively, down 20.5% and 15.2% year-on-year. For the January-February period, cumulative auto production and sales totaled 4.122 million units and 4.152 million units, down 9.5% and 8.8% year-on-year, respectively.

Commenting on the market performance, Chen Shihua, Deputy Secretary-General of CAAM, pointed out, 'In February, with only 16 effective working days, the pace of production and operations for enterprises slowed down, and market activity decreased to some extent. Coupled with multiple factors such as policy transitions, the early release of demand, and a high base figure from the same period last year, auto production and sales saw a year-on-year decline in January-February.' However, he also emphasized that the market is currently in a transition period following policy adjustments, and short-term fluctuations will not change the long-term positive development trend of the industry. He remains fully confident in the stable growth of the auto market throughout the year.

Market Landscape: Chinese Brand Passenger Vehicle Share Holds Steady Above 70%

Focusing on the passenger vehicle market, from January to February this year, cumulative passenger vehicle production and sales were 3.462 million units and 3.524 million units, respectively, down 12% and 10.7% year-on-year. Looking at specific segments, in the B-segment and above, NEVs significantly outperformed traditional fuel vehicles.

The competitive landscape among leading automakers showed notable divergence. Data indicates that in February, except for Geely Auto, the other nine major groups—including SAIC, FAW, BYD, Chery, Dongfeng, Changan, BAIC, GAC, and Great Wall Motor—all experienced year-on-year declines in sales. On a month-on-month basis, all except Changan saw decreases. Looking at cumulative sales from January to February, SAIC, Geely Auto, Dongfeng, GAC, and Great Wall Motor achieved year-on-year growth.

Particularly striking is that the market share of Chinese brand passenger vehicles remained at a high level. In February, the sales share of Chinese brand passenger vehicles exceeded 70% for the first time, reaching 70.2%; the cumulative share for January-February was also high at 68.3%, demonstrating the strong resilience and market recognition of local brands.

Export Highlight: NEV Exports Surge 1.1-Fold Against the Trend

In the NEV sector, production and sales from January to February were 1.735 million units and 1.71 million units, respectively, down 8.8% and 6.9% year-on-year. However, their sales accounted for 41.2% of total new vehicle sales. In February alone, NEV sales reached 765,000 units, a year-on-year decrease of 14.2%, but their share of the month's total vehicle sales further increased to 42.4%.

Unlike the short-term adjustments in the domestic market, vehicle exports, especially NEV exports, continued the rapid growth trend seen last year, becoming the biggest highlight. Data shows that in February, vehicle exports totaled 672,000 units, a year-on-year increase of 52.4%; cumulative exports for January-February reached 1.352 million units, up 48.4% year-on-year. Among these, NEV exports in February soared by 1.1 times year-on-year to 282,000 units; cumulative NEV exports for January-February reached 583,000 units, also achieving strong growth of 1.1 times. It is worth noting that both battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) exports advanced in tandem, with year-on-year growth of 1 time and 1.2 times, respectively, in the first two months.

Market Outlook: Short-Term Pressure Does Not Dim Confidence for the Full Year

Looking ahead, Chen Shihua candidly stated that based on the sales data from the first two months, the overall auto market still faces considerable pressure, and this pressure is likely to extend into March. Nevertheless, he remains optimistic about the prospects for full-year production and sales. According to CAAM's forecast, China's total auto sales are expected to reach 34.75 million units in 2026, a year-on-year increase of 1%, with the industry maintaining a steady development trajectory overall.