In the final days of the Spring Festival holiday, as residents gradually returned to Shanghai, the city's automotive retail market began to rebound, with customer traffic steadily increasing across various brand dealerships. A combination of trade-in policies, automaker promotions, and in-store activities attracted consumers looking to purchase vehicles. On February 23, visits to multiple car dealerships revealed a noticeable rise in foot traffic, with many customers arriving to inspect models and seek information. Sales staff at several locations reported that as the holiday concluded and daily life normalized, consumer interest in viewing and buying cars continued to grow, indicating a steady return to regular market rhythms.
On February 23, multiple families were observed selecting vehicles at showrooms. A Tesla sales representative mentioned that store traffic had significantly improved in the last two days of the holiday, with many visitors coming as families. While not yet at peak season levels, the situation was notably better than pre-holiday, and several sales had already been closed that day. The representative also highlighted that promotional offers set to expire at the end of February were encouraging quicker purchasing decisions. Financial incentives such as "7-year ultra-low interest" and "5-year zero-interest" plans, along with an "8,000 yuan insurance subsidy" and "8,000 yuan optional accessory package," were particularly appealing to customers. The salesperson emphasized that daily payments could be as low as a few dozen yuan, significantly reducing the financial burden of car ownership.
A salesperson from Ledo Auto also noted that many customers inquired about promotions immediately upon entering the store, with offers like a "7-year 0.49% annualized fee rate" being key factors in their decision-making. Additionally, although a vehicle purchase tax will be imposed on new energy vehicles starting in 2026, opting for battery leasing allows taxation based on the vehicle's body price excluding the battery, substantially lowering the tax base. For example, choosing this option for a NIO ET5T could save approximately 4,000 yuan in purchase tax. Other brands, including NIO, Li Auto, and XPeng, have also introduced similar low- or zero-interest financial plans, making them a core competitive strategy in the new energy vehicle market during the Spring Festival period.
Policy support has further bolstered the market recovery. The national subsidy program will continue into 2026, with fixed-amount subsidies optimized to proportional subsidies based on vehicle price. In Shanghai, the auto trade-in subsidy is allocated through a lottery system. Several sales personnel noted that the system automatically includes previously unsuccessful applicants in subsequent lottery rounds, meaning that earlier vehicle purchases and registrations increase the number of lottery participations and overall chances of winning. This has motivated trade-in customers to buy sooner.
According to a February 21 report by CCTV Finance, as of February 19, 2026, the trade-in policy had facilitated the replacement of 612,000 vehicles, generating 100.53 billion yuan in new car sales. The policy has effectively unlocked automotive consumption potential and become a significant driver of market recovery. Field visits and market data indicate that although February's production and sales were shortened due to the Spring Festival holiday, supportive policies and corporate discounts are gradually mitigating off-season effects. The automotive market is maintaining a stable and positive growth trajectory, laying a solid foundation for steady performance throughout the year.
Looking ahead to the full year of 2026, the China Association of Automobile Manufacturers forecasts total vehicle sales to reach 34.75 million units, a 1% year-on-year increase, with passenger vehicle sales expected to hit 30.25 million units, up 0.5%. New energy vehicle sales are projected to reach 19 million units, representing a 15.2% year-on-year growth.