China’s EV Slowdown Deepens as BYD Hits Two-Year Low
China's electric vehicle market faces mounting pressure as January deliveries plummet to their lowest level in two years. BYD, the sector's bellwether, reflects the broader downturn with weakened demand and rising production costs. Government subsidies are drying up just as price wars intensify among domestic manufacturers.
At least six major EV brands—including Xiaomi and Xpeng—reported steep sales declines after December's seasonal peak. The slowdown exposes structural challenges: opaque reporting practices obscure true sales figures, while international trade tensions Flare amid oversupply concerns.
"We see growing pressure on China's auto market through 2026," warns Helen Liu of Bain & Company. Policy shifts and cutthroat competition threaten to reshape the landscape. Some consumers appear to be postponing purchases, waiting for clearer signals from regulators and the market.
