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In Depth: China Auto Market Hits the Brakes After Subsidy Cuts

By Yu Cong and Ding Yi
2026年04月03日 19:16
A sharp drop in domestic sales underscores the impact of policy tightening, as automakers turn to exports and new technologies to revive momentum

China’s auto market hit a snag at the start of 2026 with domestic sales dropping nearly a quarter year-on-year in the first two months, with new-energy vehicle (NEV) shipments, once a key driver of growth, slipping as the government cut back subsidies for electric car buyers.

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