On February 11, the China Passenger Car Association (CPCA) released its market analysis for January, showing that China’s new energy passenger car exports reached 139,000 units, a 29.4% year-on-year increase and a 13.9% month-on-month growth.

In January, China’s production of new energy passenger cars totaled 940,000 units, up 25.8% from last year but down 35.1% compared to December. Retail sales for new energy passenger cars were 744,000 units, a 10.5% year-on-year increase, but a 42.9% decrease from December. Additionally, the domestic retail penetration of new energy vehicles reached 41.5%, which was a 9-percentage point increase from the same period last year.

The overall retail sales of passenger cars in China for January amounted to 1.794 million units, down 12.1% from the previous year and down 31.9% from December.

The CPCA explained that the slower sales in January were largely due to the early arrival of the Chinese New Year, with many consumers completing their car purchases before the holiday season. This led to a weaker-than-usual car market in January. Furthermore, the period before and after the Chinese New Year is typically a peak for vehicle purchases in rural areas, where the demand for gasoline-powered cars is higher, which explains the lower retail penetration of new energy vehicles during this time.

Looking ahead, the CPCA expects the market to pick up after the holiday season as new car replacement policies are gradually introduced across the country. February’s car market sales are expected to show steady growth, with new energy vehicles being a key driver of that growth.