FX.co ★ China Car Sales Drop 0.6% in March

China’s total vehicle sales fell 0.6% year-on-year in March 2026, following a downwardly revised 15.2% slump in February, according to data from the China Association of Automobile Manufacturers (CAAM). The sharp decline in February was largely attributed to a significant reduction in working days, as the Lunar New Year holidays fell in February this year instead of January as in the previous year. Meanwhile, sales of new energy vehicles (NEVs) increased 1.2% year-on-year in March. For the first quarter as a whole, total car sales declined 5.6% year-on-year, a marked reversal from the 11.2% increase recorded in the same period of 2025, while NEV sales fell 3.7% in Q1 2026.