On March 3, the China Automobile Dealers Association (CAAM) released its analysis of the regional market dynamics for passenger cars in January 2026. The report highlighted that the national retail market for passenger cars in 2026 is undergoing a notable trend of consumption upgrading and exhibiting differentiated growth patterns. Specific observations include:

• Market Differentiation: Subsidy policies have significantly driven sales of high-end models, whereas the economy car segment remains sluggish, underscoring the impact of policy incentives.
• Regional Growth Disparity: Northern China is poised to demonstrate considerable retail growth potential, while southern China continues to exhibit a strong market performance.
• Model Preferences: Hybrid models are gaining favor in certain regions; however, the market trend for plug-in hybrid models remains lackluster.
• Segment Strength: C-class models and large three-row vehicles with spacious interiors are performing strongly, with large SUV models particularly popular in regions such as Beijing, Shanghai, and Guangdong.