In February 2026, influenced by the "longest Spring Festival holiday in history," China's auto market underwent a genuine stress test. With only 16 effective working days and the early release of pre-holiday demand, most automakers saw significant month-on-month sales declines compared to January.

Within the new energy vehicle (NEV) camp, February delivery figures showed a clear divergence, yet the overall trend was a sequential decrease. XPeng Inc. led with 28,000 vehicles delivered, though this represented a 12% drop from January's 32,000 units. The company also announced that its new A10 model will soon begin pre-sales.

Li Auto delivered 26,000 new vehicles in February. By the end of the month, its cumulative historical deliveries reached 1,594,300 units. Nio delivered approximately 20,000 vehicles, a 57.6% year-on-year increase but a 23.5% month-on-month decrease.

XPeng Inc. delivered 15,000 new vehicles in February, down about 23.7% from the previous month. On the product and technology front, the company's second-generation VLA will begin rolling out in March, and the 2026 XPeng Inc. X9 all-electric version is set to launch soon.

XIAOMI-W's auto unit delivered over 20,000 vehicles in February, nearly halving from January's figure of over 39,000 units. In response, XIAOMI-W Group Founder, Chairman, and CEO Lei Jun stated, "The currently available model is primarily the YU7. XIAOMI-W Auto is preparing for the mass production of the new-generation SU7." Lei had previously revealed that XIAOMI-W Auto's delivery target for 2026 is 550,000 vehicles.

Traditional automakers and joint venture brands also faced month-on-month sales pressure, though their NEV segments and some leading joint ventures showed signs of stabilization. Zeekr reported sales of 24,000 units in February, achieving both year-on-year and month-on-month growth.

During the same period, GWM's NEV sales reached 12,000 units, with cumulative sales since the start of 2026 totaling 30,000 vehicles. According to GWM's production and sales report, its total February sales were 72,000 units, showing a slight year-on-year decrease. However, the WEY brand performed notably well, with growth exceeding 54%.

SAIC Motor sold approximately 269,000 whole vehicles in February, including 71,000 NEVs. According to a BAIC BluePark announcement, Beijing Electric Vehicle Co., Ltd. sold 7,364 units in February, an 18.26% year-on-year increase. Cumulative sales from January to February reached 15,437 units, up 14.81% year-on-year.

Among joint venture brands, Dongfeng Honda's terminal sales reached 17,000 units in February, a 10.1% year-on-year increase, marking two consecutive months of positive growth. The CR-V model alone achieved sales exceeding 10,000 units.

Based on in-depth analysis of the February auto market by the China Automobile Dealers Association and the China Passenger Car Association, the month-on-month decline exhibited clear seasonal characteristics. A CADA survey indicated that the automobile dealer inventory alert index for February was 56.2%, down both year-on-year and month-on-month. However, affected by the long holiday, 76.8% of dealers reported that February sales fell short of expectations.

The CPCA previously noted that the NEV penetration rate dropped to 36.4% in the first week of February, primarily due to pre-holiday demand pull-forward and holiday disruptions. Nevertheless, with workers returning to cities after the holiday and spring auto exhibitions commencing in various regions, terminal customer traffic and sales are expected to rebound sequentially in March.

Facing the off-season pressure in February, many automakers intensified their financial incentives and purchase subsidies. While direct price cuts became less common, financial packages featuring ultra-long-term low-interest loans, zero-down-payment options, and trade-in subsidies became mainstream.

Entering March, automakers have further amplified their promotional policies. Tesla China continued its "7-year ultra-low interest" loan policy; orders placed before March 31 for the Model 3 start with a down payment of RMB 79,900 and a first-month installment as low as RMB 1,759. The Model Y starts with a down payment of RMB 79,900 and a first-month installment as low as RMB 2,188. Consumers can also opt for a 5-year zero-interest loan plan.

On March 1, Ledao Auto launched a new round of purchase policies. Building on its 7-year ultra-low-interest financial scheme, it introduced a policy fully covering the purchase tax, offering subsidies of up to RMB 10,262 across its lineup. Customers opting for battery leasing can enjoy a full purchase tax subsidy. For Ledao L90 users who purchased after January 1, 2026, and did not receive the purchase tax subsidy, the brand will provide an additional 80,000 points subsidy.

In March, XPeng Inc. extended its Chinese New Year purchase benefits until March 31. The 2026 XPeng Inc. G6 is eligible for an RMB 8,000 purchase subsidy, and buyers can choose between a 2-year zero-interest plan or an RMB 3,000 optional equipment fund. The 2026 XPeng Inc. P7+ offers an RMB 8,000 New Year purchase subsidy, with a choice between a 2-year zero-interest plan, a 3-to-5-year low-interest financial scheme, or an RMB 3,000 optional equipment fund.

Concurrently, some automakers opted for direct price reductions. SAIC-GM Buick announced a "RMB 10 Billion Red Envelope" New Year benefit campaign. From now until March 31, the Enclave Plus and LaCrosse are both reduced by RMB 5,000, with limited-time starting prices of RMB 164,900 and RMB 154,900, respectively. For models like the Enclave S and Regal, orders placed via Tmall or Douyin can enjoy a deposit expansion offer of RMB 1,000抵扣5,000.

CPCA Secretary-General Cui Dongshu previously emphasized that standardizing auto industry pricing behavior and curbing disorderly price cuts can help alleviate consumer purchase hesitation, a point corroborated by market practices in February 2026. In an environment of relative price stability and favorable financial policies, consumer decision-making has become more rational. With clearer application processes for local "two-new" subsidies and the arrival of a密集 new model launch period, automakers are attempting to drive a genuine recovery in March through a dual strategy of policy and product initiatives.