This article offers a comprehensive review of China’s passenger vehicle market in February 2026, along with an outlook for March. In February, retail sales, production, and wholesale volumes all declined year-on-year, influenced by the adjustment and recovery phase following tax subsidy changes and the prior overdraft effect. However, exports demonstrated exceptional resilience. Retail sales across domestic brands, joint venture brands, and luxury vehicles all experienced declines. In the new energy vehicle (NEV) sector, while production, retail sales, and wholesale volumes also decreased year-on-year, exports surged notably, with certain automakers delivering outstanding performances. Looking ahead to March, production and sales are anticipated to rise month-on-month, supported by an increase in working days, new product launches, and policy incentives. Nevertheless, the potential for explosive consumption growth remains limited. As a vital infrastructure for consumption, it is crucial for the automotive industry to stimulate sales. Data reveals that in January 2026, China’s vehicle market accounted for 32.7% of the global share, with domestic brands’ overseas NEV sales contributing 28.3% to the global total.