Despite the short-term slowdown, cumulative NEV performance for the year remained strong. Year-to-date NEV retail sales reached 11.948 million units, up 18% YoY.
According to the latest data released by the China Passenger Car Association (CPCA), nationwide passenger car retail sales reached 764,000 units between December 1 and 14, down 24% year-on-year (YoY), while edging up 2% month-on-month (MoM).
Cumulative retail sales for the year to date totaled 22.247 million units, representing a 5% YoY increase.
Pressure was more pronounced on the wholesale side. In the first two weeks of December, passenger car manufacturers wholesaled 734,000 units, down 31% YoY and 15% from the previous period. Year-to-date wholesale volumes reached 27.499 million units, up 9% YoY.
New energy vehicles remained the core driver of the market, though short-term momentum weakened.
NEV retail sales totaled 476,000 units in the first two weeks of December, down 4% YoY but up 1% from the previous period, with penetration still reaching 62.3%.
Over the same period, NEV wholesale volumes stood at 457,000 units, down 15% YoY and 14% month on month, with wholesale penetration also at 62.3%.
Despite the short-term slowdown, cumulative NEV performance for the year remained strong. Year-to-date NEV retail sales reached 11.948 million units, up 18% YoY.
Meanwhile, cumulative NEV wholesale volumes climbed to 14.213 million units, marking a 26% increase. The structural advantage of NEVs continues to stand out.
On a weekly basis, passenger car retail sales averaged 42,000 units per day in the first week of December, down 32% YoY and 8% from the previous period.
In the second week, daily retail sales rebounded to 67,000 units, though still down 17% YoY, while rising 9% from the prior week. The pace of recovery remained slower than in previous years.
Wholesale activity followed a similarly weak pattern. In the first week, manufacturers’ daily wholesale volumes averaged 43,000 units, down 40% YoY and 18% from the previous period.
In the second week, volumes recovered to 62,000 units per day, but were still down 22% YoY and 13% MoM.
CPCA attributed the trend largely to changes in the policy environment. In December last year, trade-in and replacement subsidy programs were intensified across multiple regions, significantly boosting retail sales. Against that high base, the weaker growth seen this year is broadly in line with expectations.
Trade-in incentives tend to stimulate replacement demand rather than rigid consumption. As policies were scaled back, demand volatility increased. Retail sales had already shown a month-on-month decline in November, and the recovery seen in early December remained limited.
That said, the NEV purchase tax exemption policy is set to expire at the end of this year. With vehicle purchase costs expected to rise by five percentage points next year, some year-end support remains in place.
At the same time, many consumers are waiting to see how consumer subsidies will evolve in 2026.
Overall, China’s auto market has made a weak start to December, but not a sharp slowdown.
Retail sales are recovering gradually, while manufacturers are proactively cutting back on wholesale volumes. A year-end uplift is still possible, though its magnitude is expected to be limited.
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