Latest data from the China Passenger Car Association shows that from April 1 to 26, nationwide passenger vehicle retail sales reached 1.004 million units, down 24% year-on-year and 19% month-on-month. On a cumulative basis, total retail sales since the beginning of the year stood at 5.226 million units, down 19% year-on-year, indicating that the overall market remains in an adjustment phase. Demand was partially front-loaded at the end of March by automakers, while the Qingming holiday in early April shortened the effective selling period, leading to a noticeable cooling in end-market transactions. Weekly data reflects the trend. Average daily retail sales were only 25,000 units in the first week of April, recovering to 54,000 units by the fourth week, indicating a relatively slow pace of recovery. Weekly sales volumes and growth rates from 2024 to April 2026 The wholesale side also faced pressure. Over the same period, nationwide passenger vehicle wholesale volume reached 1.268 million units, down 15% year-on-year and 24% month-on-month. Year-to-date wholesale totaled 7.134 million units, down 8%. Despite the broader market weakness, new energy vehicles remained the primary support. NEV passenger vehicle retail sales reached 614,000 units during the same period, down 11% year-on-year and 6% month-on-month, with penetration rebounding to 61.2%. The decline was notably smaller than that of the overall market. On the wholesale side, NEV performance was slightly weaker than retail. From April 1 to 26, NEV wholesale volume reached 712,000 units, down 11% year-on-year and 13% month-on-month, with penetration at 56.1%. Weekly wholesales volumes and growth rates from 2024 to April 2026 Cumulatively, NEV passenger vehicle retail sales reached 2.523 million units so far this year, down 19% year-on-year, while wholesale volume totaled 3.44 million units, down 6%. From the production side, structural divergence has become more evident. In the first three weeks of April, production of conventional fuel light vehicles totaled 465,000 units, down 24% year-on-year and 14% month-on-month. Over the same period, output of hybrid and plug-in hybrid vehicles reached 214,000 units, down 12% year-on-year but up 9% month-on-month. This suggests that while traditional internal combustion vehicles continue to contract, hybrid products are increasingly taking on a transitional role. Overall, both wholesale and retail declined in April, indicating a weak start on both supply and demand sides. However, as showroom traffic recovers and inventories are gradually digested, wholesale volumes are expected to rebound toward the end of the month and in the following weeks, narrowing the gap between wholesale and retail growth.
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