Chinese vehicle sales fall 3% in January

Industry Overview - Sales of Chinese-made vehicles, including exports, declined by 3.2% to 2.346 million units in January 2026 from 2.420 million units a year earlier, with domestic sales down almost 16% to 1.665 million units and exports up over 45% to 681,000 units [1] - The vehicle production in China was slightly higher at 2.450 million units [1] - The Chinese domestic vehicle market appears somewhat saturated, with cautious consumer sentiment and a slower-than-expected economic growth of 4.5% year-on-year in Q4 2025 [5] Market Dynamics - The Lunar New Year holidays in February affected the vehicle market, as many buyers rushed to purchase vehicles at the end of the previous year due to anticipated reductions in government incentives [2] - The full purchase tax exemption on new energy vehicles (NEVs) transitioned to a 50% discount in January, alongside reduced trade-in incentives [2] Government Measures - The Chinese government announced measures to end the "race-to-the-bottom" price war among domestic manufacturers, prohibiting automakers from selling vehicles below production costs [3] New Energy Vehicles (NEVs) - Sales of Chinese-made NEVs increased slightly to 945,000 units, with domestic sales falling by 19% year-on-year to 643,000 units, while exports doubled to 302,000 units [4] Manufacturer Performances - SAIC Motor regained its position as China's largest vehicle producer in January 2026, with global sales rising by 24% to 327,413 units, driven by a 40% increase in NEV sales to 85,374 units [7] - SAIC-GM-Wuling reported a 37% rise in global deliveries to 105,477 units, while SAIC-VW's sales fell by 9% to 68,402 units [7] - SAIC-GM's sales rebounded by 29% to 43,502 units, and the group's passenger vehicle unit reported a 51% sales increase to 77,421 units, with overseas sales surging by 52% to 104,529 units [7] Future Projections - GlobalData forecasts a slight rise in light vehicle sales in China to 27.3 million units in 2026, up from 26.9 million in 2025 [6]