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3w ago

BYD’s January EV Sales Hit Two-Year Low as China’s New Tax Bites

Analysts are watching first‑quarter results for signs of persistence after China reinstated a 5% EV purchase tax that likely pulled demand into December.

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A Volkswagen ID. UNYX electric vehicle (EV) is showcased at a Volkswagen media event in Beijing, China April 24, 2024. REUTERS/Josh Arslan/File Photo
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BYD Led China’s EV Boom. Now It Has Some Bad News: Critical Materials

Overview

  • BYD sold 83,249 battery‑electric cars in January, its weakest monthly total since February 2024, and exports fell to 100,482 from 133,172 in December.
  • China restored a 5% purchase tax on new energy vehicles on January 1 after more than a decade of exemptions, following CPCA data that showed decelerating NEV growth into December.
  • Geely moved into second place in China’s EV market with more than 270,000 January sales and projects 2.22 million NEV sales in 2026, up 32% year on year.
  • Volkswagen overtook Tesla as Europe’s top BEV brand in 2025, while JATO data show Chinese‑owned brands grew registrations 44% year on year across the region.
  • BYD’s European presence strengthened as January registrations more than doubled in the UK to 4,021 and rose elevenfold in Germany to 2,629, with some industry voices suggesting Beijing could consider renewed incentives if weakness deepens.