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On January 6, the China Automobile Dealers Association unveiled its latest 'Automobile Consumption Index'. According to the data, the automobile consumption index for December 2025 stood at 97.7, marking an uptick from the previous month. This indicates that the auto market is projected to kick off 2026 on a strong note in January.
Breaking down the sub-indices, the demand sub-index for December 2025 reached 90.3, showing a month-on-month increase. At the close of 2025, the pent-up demand for new car purchases through trade-ins, which had been held back by the expiration of local subsidies, converged with the pre-2026 Spring Festival car-buying rush. This confluence of factors is anticipated to drive a surge in car purchases in January 2026. Consequently, market demand in January is expected to surpass that of December 2025.
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