China Auto Sales Drop 34% in February to 950,000 Units

China's automobile market experienced a sharp downturn in February, with domestic passenger car sales plummeting 34 percent year over year to approximately 950,000 units, according to the China Association of Automobile Manufacturers. The decline marked the steepest in two years for the industry, driven by the Lunar New Year holiday, which shortened the selling period, alongside the expiration of electric vehicle tax exemptions and the phasing out of trade-in subsidies. Overall vehicle shipments, including exports, fell 15.4 percent to about 1.54 million units.

In contrast, Tesla bucked the trend with a strong rebound from its Shanghai Gigafactory, delivering 58,600 Model 3 and Model Y vehicles to Chinese buyers and for export, a 91 percent increase from the previous year. The Model Y led as the top-selling electric vehicle with 41,404 units, priced starting at 263,500 yuan, followed by the Model 3 at 17,195 units. This surge extended Tesla's streak of year-over-year growth to four months, though sales dipped 15.2 percent from January's figures, aligning with seasonal patterns influenced by the holiday. The impressive gain stemmed partly from a low base last year, when...