CAAM: China's auto sales slip 3.2% YOY in January

China's automotive market slowed down in the first month of 2026, with sales slipping by 3.2% on year to reach 2.35 million units, while auto output rose by a minimal 0.01% from January last year to 2.45 million units, according to the latest release by China Association of Automobile Manufacturers (CAAM) published on February 11.

The slow start to the year reflected a confluence of factors, according to CAAM, chief among them being the introduction of a half-rate levy on purchases of new energy vehicles (NEVs), as the standard 10% purchase tax shifted from full exemption to a reduced 5% rate from January 1,