China’s electric vehicle (EV) market is undergoing a shift, with BYD experiencing a significant sales drop while rivals, particularly Geely, surge ahead. This marks a notable change after BYD’s sustained growth over the past three years.
Market Slowdown and Key Figures
Through the first two months of 2026, BYD recorded 400,241 vehicle sales – a 36% decrease year-over-year. February sales alone fell by 9.5% from January, and a more substantial 41% compared to the same period last year, totaling 190,190 units. This slowdown is attributed to reduced government incentives and weakening consumer confidence, with potential buyers pausing purchases while awaiting new models or clarified trade-in policies.
Export Growth Amid Domestic Challenges
Despite domestic headwinds, BYD continues to expand its international presence. The company exported 100,600 new energy vehicles (EVs and plug-in hybrids) in February, bringing the two-month total to 201,082 units. This suggests a strategic pivot towards overseas markets as domestic competition intensifies.
Rising Competition
Several Chinese automakers are capitalizing on BYD’s struggles. Leapmotor saw a 19% sales increase to 60,126 units, while Xiaomi’s EV division jumped 48% to over 59,000 units. Zeekr and Nio posted even larger gains, with deliveries up 84% and 77% respectively.
Geely’s Surge
Geely has notably surpassed BYD in domestic sales, delivering approximately 76,000 more vehicles year-to-date. This marks the first time Geely has outsold BYD for two consecutive months since 2022. While Geely leads within China, BYD maintains a slight edge in overseas exports, shipping 181,891 vehicles compared to BYD’s 201,082.
This shift underscores the increasingly competitive nature of the Chinese EV market, where rapid growth is giving way to a more balanced landscape with multiple strong contenders. The future will likely depend on product innovation and adaptability to shifting consumer preferences.
