The Chinese EV market has slowed down: January BYD sales fell to a two‑year low

Short summary

In January BYD electric vehicle sales fell to the lowest level in two years, even though the first month of the calendar year is usually characterized by strong demand volatility in the Chinese auto market. The results for the first quarter will clarify whether EV and hybrid market growth slows.

Key facts

Metric January 2025 December 2024 BYD “pure” electric vehicle sales 83 249 – Total BYD vehicles sold (EV + hybrids) 205 518 – Lowest sales level since February 2024 121 748
* According to CNBC, the six largest Chinese automakers reported a decline in January sales compared with December.
* Regulatory changes and intensified price competition affect the market: starting in January buyers of new EVs and hybrids must pay a 5 % tax instead of the previous 0 %. The full tax rate is 10 %.

Who wins, who loses

Manufacturer January 2025 (EV) Change vs. December
BYD 83 249 Decrease (from 121 748 in December)
Aito (Huawei partner) >40 000 +80 % YoY
Leapmotor — Growth
Nio — Growth
Xiaomi 39 000 -13 % vs. December
*Geely*, competing in the low‑price segment, became the second‑largest EV seller in January (270 000+ cars) and exported over 60 000 units. It plans a 32 % volume increase to 2.22 million this year.

BYD sold 4.56 million EVs/hybrids last year but has not announced specific targets for 2025. The company aims to raise exports by 25 % (≈1.3 million cars). In January exports were 100 482 units, compared with 113 172 in December.

Market condition

* Xpeng and Li Auto remain “outsiders” in sales.
* Despite a drop in demand in January, hybrid and EV sales rose only 2.6 % in December – the third consecutive month of slowing growth rates. If the trend continues, the government may restore some subsidies that previously spurred growth.

Economic context

The automotive industry provides about 30 million jobs in China (≈10 % of urban population), but its GDP contribution is far lower than real estate: 3.7 % versus 23 %. The March parliamentary session will set new economic development targets for the current year.