February 2026 NEV Inventory Report

In February 2026, the Chinese new energy passenger vehicle market showed early signs of destocking efforts, though pressure remained elevated. As illustrated in the chart, inventory volume fell to 1.3 million units, marking a moderate month-on-month decrease. Concurrently, inventory funds dropped to 169.8 billion Yuan. This downward trend in both volume and capital deployment indicates that the market has made tangible progress in inventory reduction, which helps ease dealers’ financial pressure ahead of the spring sales season.

Meanwhile, the NEV inventory ratio in China spiked to 2.69 in February 2026. This represented a sharp jump from 1.21 in December 2025 and far exceeded the 1.5 warning line. From a brand perspective, 60% of major brands recorded an inventory ratio above 2.0 with severe backlog, 32% remained below 1.5 with manageable pressure, and only 8% fell within the reasonable 1.5-2.0 range. This data highlights a widening inventory gap between leading and emerging players

Between December 2025 and February 2026, NEV inventory conditions varied drastically across segments. The MPV category faced the highest pressure, with the sub-100,000 RMB bracket peaking at 18.8. SUVs maintained relatively healthier inventory levels. Sedans saw a peak ratio of 5.0 in the 200,000-300,000 RMB range. Overall, the sub-100,000 RMB segments suffered from severe oversupply, while the premium 300,000 RMB+ market enjoyed balanced inventories.

Finally, inventory fund positioning across leading NEV brands reveals a distinct bifurcation. A majority of players registered a month-on-month decrease: BYD’s accelerated inventory liquidation drove a notable three-month decline, while Tesla maintained consistent capital deployment efficiency. Brands like Galaxy, Li Auto, and Leapmotor held depressed inventory funds at approximately 3 billion RMB, with a sequential drop; conversely, Xiaomi and Zeekr reported February growth due to new model inventory build-up.