Domestic auto retail sales experienced significant pressure in February 2026, with multiple automakers reporting month-over-month declines in sales. Factors contributing to this trend include the extended Spring Festival holiday, fewer effective sales days, pre-holiday inventory clearance, and consumer anticipation of promotional campaigns during the upcoming spring auto exhibitions.
At the same time, leading new energy vehicle manufacturers continued to strengthen their efforts in areas such as delivery resilience, charging infrastructure development, product supply, and overseas market expansion. Industry experts widely believe that as production and operations resume, the marginal effects of optimized trade-in policies are released, and a wave of new vehicle launches approaches, market demand is expected to gradually recover.
Holiday impacts were a key factor. According to a representative from the China Automobile Dealers Association, retail sales faced notable pressure in February. On one hand, the Spring Festival holiday reduced the number of effective sales days, and the return of consumers to their hometowns led to lower foot traffic at dealerships. On the other hand, pre-holiday inventory clearance, adjustments to new energy vehicle purchase tax policies, and consumer expectations for discounts at spring auto exhibitions further fueled a "wait-and-see" attitude among buyers.
Against this backdrop, sales across many emerging automakers generally declined month-over-month. For example, Leapmotor sold 28,100 vehicles across its lineup, maintaining its position in the top tier of mainstream new energy automakers. Li Auto sold 26,400 vehicles, showing relatively stable performance. NIO Inc. delivered 20,800 vehicles, a year-over-year increase of 57.6%. XPeng delivered 15,300 vehicles, placing it at the lower end among mainstream new energy automakers. Although some of these companies reported positive year-over-year growth, all experienced varying degrees of month-over-month decline.
Beyond emerging automakers, data from several traditional automakers also reflected the common trend of "temporary pressure" in the domestic market in February. Among them, SAIC Motor sold 269,500 vehicles, a year-over-year decrease of 8.64%, including 71,300 new energy vehicles, down 17.18% year-over-year. However, its exports and overseas sales reached 99,000 units, up 46.12% year-over-year. BYD sold 190,200 vehicles, a decline of 35.80% compared to the same period last year. BAIC BluePark sold 7,364 new energy vehicles, up 18.26% year-over-year. Great Wall Motor sold 72,600 vehicles, down 6.79% year-over-year. Geely Auto sold 206,200 vehicles, a slight increase of about 1% year-over-year, including 117,000 new energy vehicles, while its overseas exports surged 138% year-over-year.
Zhang Xiang, a guest professor at Huanghe Science and Technology College, noted that the month-over-month fluctuations in February were primarily due to seasonal and holiday factors and did not alter the fundamental recovery trend of the auto market for the full year. Especially amid the ongoing rise in new energy vehicle penetration rates, improvements in charging infrastructure, and accelerated product iterations by automakers, the coexistence of "short-term cooling" and "medium-term improvement" in the market is likely to continue.
Automakers are actively positioning themselves for the upcoming spring season. From the supply side, companies are accelerating product and technological upgrades to capture market opportunities. For instance, Leapmotor disclosed that the interior of its first A-platform model, the A10, has been unveiled, with pre-sales set to begin in March. Li Auto also announced that its new-generation L9 model and its "ultimate version" will launch in the second quarter, emphasizing continuous advancements in intelligent capabilities. Xiaomi Auto sold over 20,000 vehicles in February and revealed preparations for the mass production of its next-generation SU7 model. Zeekr sold 23,900 vehicles in February, a sharp increase of 70% year-over-year, and previewed the launch of a new flagship SUV in the second quarter.
In terms of charging and service systems, automakers' internal improvements are also helping stabilize consumer expectations. According to Li Auto, its supercharging network provided over 1.45 million charging sessions during the Spring Festival holiday, with total charging volume exceeding 42 million kWh. NIO Inc. reported providing 2.07 million battery swap services during the same period, with a significant portion occurring on highways. Industry insiders believe that the increased density of charging networks and enhanced service capabilities will help alleviate range anxiety during peak travel periods, thereby improving the user experience and word-of-mouth for pure electric and extended-range vehicles.
Looking ahead, many industry professionals predict that the auto market will gradually emerge from the post-holiday "low base" phase starting in March. On one hand, promotional activities at auto exhibitions and new model launches are expected to increase dealership traffic and conversion rates. On the other hand, if policies such as trade-in programs are further implemented and create stable expectations, combined with enhanced financial offers and purchase benefits from automakers, the likelihood of a recovery in terminal demand will strengthen. Overall, the "temporary pressure" seen in February appears to be a short-term fluctuation resulting from the combined effects of holidays and consumer waiting periods, rather than a sign of a weakening trend. Conditions for a market recovery remain in place.