BYD’s January EV Sales Plummet to Two-Year Low as China’s Market Cools

BYD's electric vehicle sales cratered in January, with just 83,249 battery-powered passenger cars sold—the lowest monthly figure since February 2024. The slump coincides with China's reinstatement of a 5% purchase tax on new energy vehicles, ending a decade-long exemption that fueled the sector's explosive growth.

Geely has capitalized on the shifting landscape, seizing second place in China's EV market with over 270,000 vehicles sold last month. BYD's exports likewise contracted sharply, dropping to 100,482 units from December's 133,172. At least six major Chinese EV brands reported similar month-over-month declines, signaling broader market distress.

The sales collapse—30% below prior-month figures and three times worse than industry averages—reveals the aftermath of years of destructive price wars. These battles eroded profitability, decimated resale values, and undermined consumer confidence in the sector. With subsidies withdrawn and competition intensifying, China's EV miracle faces its sternest test yet.