The China Passenger Car Association: In January, retail sales of narrow passenger vehicles are expected to be 1.8 million, with new energy vehicles expected to be 800,000.

According to the China Automobile Dealers Association, the Spring Festival in 2026 is later than usual. January is the last full sales month before the Spring Festival, with more working days compared to the same period last year. With the release of first-time purchase demand due to Spring Festival travel, the market is expected to achieve a slight year-on-year increase for the entire month. Currently, the national vehicle scrappage subsidy has been implemented, but the reduction in vehicle purchase tax subsidies has led to some overspending effects. Subsidies for trading in old vehicles for new ones in various provinces are still gradually being implemented, leading to strong consumer wait-and-see sentiment and continued uncertainty in the terminal market.