Shares of Chinese EV Makers Fall After Weak Start to 2026 Sales

By Megan Cheah

Shares of Chinese electric-vehicle makers broadly declined in Hong Kong after several companies reported weaker January sales.

BYD shares fell 7.8%, while Li Auto dropped 3.6%. NIO slid 6.0% and Xpeng sank 9.0%. Great Wall Motor retreated 4.75%.

BYD retained its market lead, selling 210,051 vehicles in January, the company said Sunday. That figure was down 30% from a year earlier.

Other manufacturers also reported weaker deliveries. XPeng delivered 20,011 vehicles in January, 34% lower on year. Li Auto posted January deliveries of 27,668, an 8% decline from a year earlier.

NIO delivered 27,182 vehicles, nearly double the year-earlier level but 44% lower than in December.

Great Wall Motor's new-energy vehicle sales fell 19% from a year earlier to 18,029 units. The automaker on Friday reported preliminary fourth-quarter profit of 9.91 billion yuan, equivalent to $1.43 billion, down about 22% from a year earlier.

While the profit missed market expectations, Great Wall's new models and rising exports point to longer-term growth potential, Deutsche Bank analyst Bin Wang said in a note.

Analysts expect China's auto industry to face a difficult 2026. A higher effective EV purchase tax and tighter policies are likely to drive a clear downtrend for electric-vehicle makers, Nomura analysts said.

The analysts said the drag on sales is expected to become more evident in coming months. EV makers are therefore likely to roll out measures to navigate the challenging environment, including purchase-tax subsidies for certain models and trade-in incentives.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

February 01, 2026 23:25 ET (04:25 GMT)