• China’s NEV retail sales came in at 495,000 units from March 1 to 22, contributing 53.9% of total passenger car sales.
• The Chinese New Year holiday and consumers waiting for upcoming NEV models led to relatively sluggish transactions.

China’s passenger new energy vehicle (NEV) retail sales remained relatively sluggish from March 1 to 22, showing a significant year-on-year decline.

During this period, national NEV retail sales stood at 495,000 units, down 17% from the same period last year, according to data released Wednesday by the China Passenger Car Association (CPCA).

Notably, compared to the same period in February, which was affected by the Spring Festival holiday, the figure surged by 66%.

The overall passenger car market also faced downward pressure. In the first three weeks of March, total national passenger car retail sales were 920,000 units, down 16% year-on-year.

So far this year, China’s cumulative NEV retail sales have totaled 1.556 million units, down 23% year-on-year.

Despite the year-on-year sales decline, the market share of NEVs remains at a historically high level. From March 1 to 22, the retail penetration rate of passenger NEVs reached 53.9%.

The recent market weakness is mainly affected by the Spring Festival holiday and the macroeconomic environment. The 2026 Spring Festival holiday fell between February 15 and 23, and the post-holiday auto market is currently in a sluggish period.

As more NEV models are released later this year, market enthusiasm is expected to gradually recover, the CPCA said.

However, for now it still takes time from new car launches to final deliveries, making it difficult for the incremental sales to be reflected in the March market performance, according to the CPCA.

In the first week of March, China’s average daily retail sales of passenger cars were 31,000 units, down 24% year-on-year and down 25% from the same period last month.

In the second week of March, average daily retail sales of passenger cars were 45,000 units, down 19% year-on-year but up 42% from the same period last month.

In the third week of March, average daily retail sales were 51,000 units, down 7% year-on-year but up 62% from the same period last month.

China’s NEV retail sales in March are expected to nearly double from February’s trough, with the penetration rate returning above 50%.