China auto sales slipped in December as demand slowed

Retail passenger‑car sales fell 14% in December to 2.26 million units while full‑year sales rose 3.8% to 23.7 million; new‑energy vehicles made up 57% of passenger‑vehicle sales in 2025.

China's passenger‑car retail sales weakened in December as consumer demand cooled, raising questions about near‑term conditions for the auto sector in 2026. The China Passenger Car Association reported a 14% year‑on‑year drop in December to 2.26 million units, although sales were up 1.6% from November. For the full year 2025, retail passenger‑car sales rose 3.8% to 23.7 million units. The December slowdown was linked to consumers taking a wait‑and‑see approach as a trade‑in subsidy program was due to expire. Key figures: - Retail passenger‑car sales fell 14% year‑on‑year in December to 2.26 million units, and rose 1.6% from November. - Full‑year retail passenger‑car sales for 2025 rose 3.8% to 23.7 million units. - New‑energy vehicles accounted for 57% of passenger‑vehicle sales in 2025; NEV retail sales were 1.3 million in December (+2.6%) and 12.8 million for the year (+18%). - Passenger‑car exports jumped 46% year‑on‑year in December to 588,000 units. - The article mentions Tesla delivered 97,171 cars from its Shanghai plant to Chinese buyers in December and exported 3,328 units. - Beijing renewed the car trade‑in subsidy program for 2026 after it was set to expire, a move cited as part of efforts to support consumption. Summary: December's decline suggests demand remains fragile and could keep business conditions challenging for parts of 2026. The CPCA said the market is likely to see a cautious but stable start to the year due to early policy support, pent‑up demand and a late Lunar New Year, and it forecast a U‑shaped sales trajectory with a strong early phase, a midyear slowdown and a rebound toward year‑end. The association expects overall domestic sales to be broadly flat from 2025 while exports are likely to sustain double‑digit growth.