During the statistical period from March 16 to March 22, 2026, China Passenger Car Association (CPCA) releases the latest Weekly Analysis Report on China’s Passenger Vehicle Market. During the statistical period, the average daily retail sales of the passenger vehicle market reached 51,000 units, representing a year-on-year increase of 62% compared with the same period last month. The cumulative retail sales from the beginning of this month to the present stood at 920,000 units, a year-on-year decrease of 16%. Wholesale performance was even stronger. The average daily wholesale volume of domestic passenger vehicle manufacturers reached 62,000 units this week, surging 126% from the same period last month. The cumulative wholesale volume of domestic passenger vehicle manufacturers reached 1.084 million units from the beginning of this month to the present, down 14% year-on-year but up a substantial 62% from the same period last month. Wholesale Performance The report noted that dealers are currently under pressure, with terminal transaction prices remaining relatively stable and failing to meet consumers’ psychological expectations. Overall market sentiment in March is gradually recovering. The new energy vehicle market is currently awaiting new product launches and a clearer market environment, marking the most challenging period at present. The new energy vehicle sector remains the brightest spot in the automotive market. Data showed that retail sales of the new energy vehicle market reached 495,000 units from March 1 to 22, down 17% year-on-year, with the new energy retail penetration rate hitting 53.9%. Since the beginning of this year, cumulative retail sales of new energy vehicles have reached 1.556 million units, a year-on-year decrease of 23%; cumulative wholesale volume stood at 2.133 million units, down 10% year-on-year. In the power battery market, the installation ratio has dropped to a historic low. Data indicated that China’s total output of power batteries and other batteries reached 142 GWh in February, up 19% year-on-year. The installation ratio of power battery output was merely 19% in February, including 21% for ternary batteries and 18% for lithium iron phosphate batteries. From a market structure perspective, 370,000 new energy vehicles were installed domestically in February, including 236,000 battery electric passenger vehicles, down 41% year-on-year, and 100,000 plug-in hybrid passenger vehicles, a year-on-year decrease of 61%. CATL’s New Product Currently, manufacturers and channel inventories of new energy vehicle dealers are affected by lower-than-expected market retail sales, resulting in relatively high overall inventory pressure across the industry. According to the report, as of the end of February 2026, the national passenger vehicle industry inventory stood at 3.33 million units, a decrease of 240,000 units from the previous month and an increase of 250,000 units from February 2025, showing a favorable trend of controlled decline in overall inventory. The optimism level of the CPCA’s forecasting team regarding the market rebounded to 23% from 5% in early February, yet it remains at a relatively low level. Further increases in local government subsidies are anticipated.