BEIJING – The world’s largest automotive market experienced its most significant downturn in 24 months during February, as China’s total vehicle sales declined 15.4% compared to the previous year, according to new industry data released Wednesday.
The China Association of Automobile Manufacturers reported that domestic vehicle purchases dropped dramatically by 34.2%, reaching just 950,000 units sold within the country’s borders. However, international shipments provided a bright spot, surging 58% to reach 590,000 vehicles exported during the month.
Industry analysts point to the timing of Lunar New Year celebrations as a contributing factor to the sharp monthly fluctuations. The holiday period traditionally creates significant volatility in manufacturing and consumer spending patterns during the opening months of each year.
When examining the broader picture, combined domestic sales and international exports showed a 10.7% decrease across January and February together, indicating underlying challenges in the market beyond seasonal disruptions. Reduced government incentives have also created headwinds for consumer demand in recent months.
