Wholesale auto sales in China fell 15% in February, Reuters reported Wednesday, citing the China Association of Automobile Manufacturers.

The association attributed the decline to the reduced number of business days caused by the Lunar New Year holidays, a stop in a tax break, and lower government subsidies, according to the report.

Domestic sales slid 34% to 950,000 vehicles, despite exports surging 58% to 590,000, Reuters said, citing the CAAM.

However, March sales could look downcast due to the U.S.-Israel war against Iran, the report said, citing CAAM senior official Chen Shihua.

The Middle East accounted for about 20% of Chinese vehicle exports in 2025, the report said.

China's biggest local automakers include Dongfeng Motor Group (HKG:0489), SAIC Motor (SHA:600104), Chongqing Changan Automobile (SHE:000625), BAIC Motor (HKG:1958), Guangzhou Automobile Group (SHA:601238, HKG:2238), Great Wall Motors (SHA:601633, HKG:2333) and FAW Group (SHE:000800).

Top new-energy vehicle manufacturers include BYD (SHE:002594, HKG:1211), Li Auto (HKG:2015), XPeng (HKG:9868) and NIO (HKG:9866, SGX:NIO).

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)