Cui Dongshu, Secretary-General of the Passenger Car Association, said that by the end of January 2026, China's inventory of passenger cars reached 3.57 million units, a decrease of 80,000 units from December 2025, but an increase of 580,000 units compared to January 2025, indicating a high level of inventory.
The inventory at the end of January 2026, combined with future sales forecasts, supports a future sales days estimate of 70 days, which is relatively high compared to 65 days in January 2023, 70 days in January 2024, and 48 days in January 2025.
Analyzing the inventory trends of companies that only produce new energy vehicles, the industry inventory dropped to 620,000 units in September due to policy measures, but rose to 720,000 units by January 2026, reflecting a decline of 160,000 units from the peak inventory, but an increase of 60,000 units compared to December. Recently, new energy vehicle dealers are facing inventory levels from manufacturers and channels that are below market expectations, contributing to significant overall inventory pressure in the industry.
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Insights
What factors contributed to the high inventory of passenger cars in China by January 2026?
What trends can be observed in China's car inventory between January 2025 and January 2026?
What does the sales days estimate indicate about the car market in January 2026?
How does the January 2026 car inventory compare to previous years?
What were the inventory levels for new energy vehicles in September 2025?
What policy measures affected the inventory of new energy vehicles in September 2025?
What challenges are new energy vehicle dealers facing regarding inventory levels?
What can be inferred about the future sales expectations based on current inventory levels?
What implications does a high inventory level have on the overall car market in China?
What are the potential long-term impacts of the current inventory situation on manufacturers?
How do January 2026 inventory levels reflect broader industry trends?
What historical patterns can be identified in car inventory levels in China?
How does the inventory situation affect consumer behavior in the car market?
What are the key differences between traditional and new energy vehicle inventory trends?
What steps can manufacturers take to address high inventory levels?
How does dealer feedback influence manufacturers' inventory strategies?
What role does consumer demand play in shaping inventory levels in the car market?
What recent news has emerged regarding policy changes affecting the car market?
What future trends might emerge from current inventory pressures in the car industry?
