Tesla Shines Amid EV Slowdown in China — February 2026 Gross sales Report

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After the same old December EV report gross sales peak in China, which coincided with an end-of-incentive gross sales rush (NEVs are now not exempt from buy tax this 12 months), and including to the Chinese language New 12 months taking place in February, EVs had an anticipated gross sales stoop, down by 32% — which seems like lots, however contemplating that the general market was additionally down 25% YoY, to round a million items, it doesn’t sound all that unhealthy.

BEVs have been down by 35% YoY in February, to 278,000 items, whereas the PHEV drop was additionally harsh (-31%). In the course of all this pessimist outlook, EREV was the powertrain much less affected by the slowdown (plugless fashions have been down 19% YoY), having dropped solely 16% YoY. That is due to the recognition of this sort of powertrain in giant SUVs, which was the class much less affected by the tip of incentives.

These occasions pulled the year-to-date (YTD) tally to round 1.1 million items, and with March set to be the primary robust month of the 12 months, we must always see Q1 finish between 1.5 to 2 million items.

Share-wise, February noticed plugin automobiles hit 45% market share. This can be a full 5 share level end result beneath the place we have been 12 months in the past. Full electrics (BEVs) alone accounted for 27% of the nation’s auto gross sales, additionally a major drop from the 31% rating of February 2025.

Nonetheless, this end result pulled the 2026 share to 41% (in the identical interval final 12 months, it was at 45% share). BEVs alone have been additionally up, to 24% (27% BEV in Jan–Feb ’24), and contemplating that the final month of the quarter is normally a robust month, we are able to assume that the nation’s plugin automobile market share will finish near the 45% mark in Q1, and June ought to see it attain 50%.

(Might China end the 12 months near 66%?)

Within the total rating, as typical, the start of the 12 months had ICE fashions populating the highest positions, however lower than in January. Additionally quite stunning, the rostrum was all BEV, one thing sudden this early within the 12 months. The Geely Xingyuan was the very best vendor, beating everybody’s darling, the Xiaomi YU7, which ended the month in third, and a surprisingly robust Tesla Mannequin Y, which ended February within the runner-up place, little question due to the brand new, extended-wheelbase Mannequin Y L.

See, Tesla? Once you provide new stuff to shoppers, your gross sales enhance! I do know, it appears extra sophisticated than rocket science (or AI), however it might be price taking a look at it….

Behind these frontrunners, it’s an ocean of ICE, with one EV island within the center — which is in itself a shock — the Li Auto i6. And Li Auto’s shark-like MPV-SUV combo deserves a number of traces of reflection.

Li Auto success as an organization has had its ups and downs, beginning with great success in 2020 due to the recognition of its revolutionary method — large, cozy SUVs with a long-range EREV powertrain. This allowed it to be probably the most profitable Chinese language startups from the get-go, however round 2024, with the market shifting in direction of BEVs, Li Auto needed to comply with the market, so the corporate launched its first BEV, the bullet-train impressed mega-MPV … Li Auto Mega.

Regardless of the wonderful specs and distinctive design, gross sales haven’t replicated the earlier success, which led the startup to postpone the launch of the i8 full measurement SUV and its smaller sibling, the i6. And gross sales continued to endure.

Once they did launch these two fashions, within the second half of 2025, their success was fairly totally different. Whereas the larger i8 did not go toe to toe with the luxurious full measurement class large boys (AITO’s M7 & M8, NIO ES8, Zeekr 9X, and so forth), the midsize i6 noticed itself in a a lot much less crowded house.

True, there are many midsize SUVs on sale, however few exude the identical degree of luxurious because the i6. The one different profitable SUV that might evaluate to it’s the Xiaomi YU7, however that one is sportier than Li Auto’s comfort-focused midsizer, and is usually priced larger than Li’s i6.

So evidently Li Auto’s new star participant has discovered its place out there, and it’ll permit the startup to experience a second wave of success.

Taking a look at the very best sellers in a number of measurement classes, issues are returning to regular, as all however the C phase (compact vehicles) have plugins main the best way. In truth, the C phase was the one class the place ICE managed to be the bulk. This can be a recurring subject, as evidently the C phase is the toughest of all to transform into EVs.

The largest shock was that the Tesla Mannequin Y and Li Auto i6 stormed into the highest two positions of the midsize class, whereas within the B phase (subcompacts), the BYD Seagull has returned to the rostrum. Will it be capable to regain the higher hand over the Geely opponents?

After a surprisingly balanced January, Tesla managed to position two fashions within the high 5, an more and more uncommon occasion. Right here’s extra information and commentary on February’s high promoting electrical fashions:

#1 — Geely Geome Xingyuan

A BYD Dolphin for BYD Seagull cash ($10,000 USD). At the very least, that’s how Geely’s inside memo may need described the Geome Xingyuan when growing its newest hatchback. And it’s received an attention-grabbing title, as Xingyuan interprets as “wishing upon a star.” Plainly Geely had its want granted. The small hatchback has lastly given the Hangzhou OEM the a lot coveted Greatest Vendor trophy, not solely beating its BYD nemesis, but in addition everybody else. In February, the Geely mannequin hit 27,362 registrations.

#2 — Tesla Mannequin Y

The prolonged wheelbase model, imaginatively known as “L,” appears to be serving to the Mannequin Y’s fortunes in China. In February, deliveries have been up 216% YoY, to 25,286 items. True, evaluating this month’s efficiency with February 2025 is distorted by the truth that a 12 months in the past, the Mannequin Y was being affected by the launch of the refreshed model. However, evaluating with what was occurring two years in the past, deliveries are kind of even. Although, contemplating Tesla’s present gross sales performances, that may already be thought-about a win….

#3 — Xiaomi YU7

Veni, Vidi, Vici. “I got here, I noticed, I conquered.” This might have been the YU7’s motto. Xiaomi’s crossover wasn’t in a position to maintain its management spot from January in February, however however, due to 20,196 registrations, it once more gained the total measurement class management place. Moreover already having that class trophy within the bag, anticipate the crossover to be a critical candidate for the general management place in 2025, and with quantity exports solely deliberate to enter movement in 2027, anticipate an incredible 12 months for the Chinese language Ferrari.

#4 — Li Auto i6

After a robust January, issues proceed to go nicely for the midsize mannequin, with the startup EV securing its first high 5 presence due to 16,007 registrations. With a excessive degree of house, consolation, and luxurious, for simply $35,000 USD (for reference, the most affordable Tesla Mannequin Y in China begins at $36,000 USD), the i6 gives an intensive checklist of apparatus (air suspension, fridge, superior self-driving — together with Lidar), with a give attention to house (three-meter wheelbase) and luxury, resulting in a mannequin that proposes full measurement luxurious in a midsize-priced EV.

#5 — Tesla Mannequin 3 

Together with the Mannequin Y, the Tesla Mannequin 3 has been the lifeline for the Texan for a very long time. However whereas the crossover sibling has been receiving common updates, the sedan has been omitted to dry. And whereas the 12,920 deliveries of February allowed it a high 5 presence, that quantity represents a 31% drop in comparison with February 2025. So, yeah, the midsize sedan is just not holding on in addition to its SUV sibling. With the worth already low ($34,500 USD), possibly it might be a very good time for Tesla to launch an prolonged wheelbase Tesla Mannequin 3? I imply, in the present day in 2026, the sedan nonetheless gives the identical inside house because it did at its launch means again in 2017…. In a market the place house is excessive on folks’s priorities, that looks as if a no brainer.

Taking a look at the remainder of the very best vendor desk, the spotlight comes from the BYD Yuan Plus, which benefitted from a current refresh to leap into eleventh, becoming a member of the remainder of the BYD Armada. The model positioned 8(!) fashions, from ninth to sixteenth, within the high 20. The final one among them was the BYD Seagull, which is recovering from the motivation lower.

Different fashions on the rise are the #17 Wuling Bingo S, SAIC’s reply to the Geely Xingyuan and BYD Dolphin, whereas the glossy Geely Galaxy A7, the make’s reply to BYD’s midsize sedan choices, joined the desk at #18 thanks to five,059 items.

Exterior the highest 20, as a result of we’re within the off-season in China, there wasn’t that a lot to speak about, however we must always spotlight the next proven fact that proves the disruption that the motivation lower has dropped at the Chinese language EV market — the $5,000 USD Wuling Mini EV bought as many items (4,866 vs. 4,878) because the $65,000 USD Zeekr 9X….

The 20 Greatest Promoting Electrical Automobiles in China — January–February 2026

Wanting on the 2026 rating, the chief Xiaomi YU7 remained in #1, however beneath it, the Geely Xingyuan has shortened the distances considerably, so I wouldn’t be stunned if the small hatchback dethroned the crossover in March.

Under these two, the Climber of the Month was the Tesla Mannequin Y, which jumped 4 positions into the third place. Now the query is — will the Texan crossover be capable to attain near the highest two subsequent month?

Please place your bets now.

The opposite climbers within the high half of the desk have been the Li Auto i6, which climbed to fifth, and the veteran BYD Track, which was up one spot to eighth. Nonetheless within the BYD steady, the Seal 06 sedan jumped three positions into tenth, whereas the Tesla Mannequin 3 did even higher, popping out of nowhere into ninth, or one place above of its ultimate standing in 2025. Will the Tesla sedan be capable to keep there?

Within the second half of the desk, there have been additionally main actions, with the highlights being the BYD Sealion 06 going up three spots, into #13, whereas two fashions rejoined the desk — the #15 BYD Dolphin and #20 BYD Qin L. Moreover, the brand new Wuling Bingo S made its debut on the desk in seventeenth place. Will Wuling’s new child be an everyday within the high 20?

Wanting on the total producer rating, after BYD’s shock crash in January, there was a variety of expectation to know what would occur in February.

Properly … whereas the development throughout the highest 10 was slowing gross sales, BYD didn’t decelerate, it crashed. Once more. Gross sales have been down 64% YoY. However … the reason may very well be linked to March sixth and the unveil of BYD’s new expertise suite, designed across the 2nd technology of the Blade battery. With wonderful specs, and the added bonus that this new expertise could be extra unfold out than beforehand thought, this may very well be simply the Osborne Impact taking its toll.

To be continued…

Wanting on the few gainers within the high 10, Tesla (+43% YoY) was by far the spotlight, however Chery (+10%) and BMW (+1%) additionally deserve a point out. Within the case of the Bavarian, it is going to be attention-grabbing to see of the brand new iX3 can have any influence in China. Thus far, the one international legacy model in a position to promote EVs in first rate volumes in China has been Nissan. Will BMW be the second?

Exterior this high 10, a point out goes out to NIO, which is continuous to develop quick (+65% YoY) due to the success of its new ES8. Can these volumes proceed?

On the losers facet, Xpeng is crashing (-59% YoY, to 11,608 items), a stunning end result for a startup that was among the many hottest manufacturers final 12 months.

Auto Manufacturers Promoting the Most Electrical Automobiles in China

Wanting on the auto model rating, there’s some information, however not on the high. Chief BYD (13%, up from 11.5%) and runner-up Geely (11%, up 0.6%) have gained share and can in all probability combat for the highest place, in the course of the the rest of the 12 months.

Issues get extra attention-grabbing beneath, although. Regardless of shedding share, Xiaomi (5.7%, down from 6.5% in January) climbed one place, to third, since earlier bronze medalist, AITO, misplaced much more share.

#5 Wuling (5.4%) held on, and is now some 100 items behind #4 AITO. So, we would see SAIC’s hottest model leap into 4th…

… until #6 Tesla (5.4%), which is fewer than 1,000 items behind AITO, experiences a robust peak month in March and surpasses each manufacturers. It may even be the case that Xiaomi’s third spot results in hazard….

Behind Tesla, one other model is on the rise. #7 Li Auto elevated its share (5.2%, up 0.6%), so it too may have a shot at becoming a member of the highest 5 in March.

Auto Teams Promoting the Most Electrical Automobiles in China

Taking a look at OEMs/automotive teams/alliances, BYD is main, with 17.2% share of the market, up 1.4% in comparison with the earlier month. In the meantime, #2 Geely, regardless of gaining 0.4% share and getting as much as 15.9%, has seen BYD put extra distance between it within the race for #1.

Removed from runner-up Geely, #3 SAIC (9.4%, down 0.4 share factors) has misplaced share, as a number of of its manufacturers (MG, IM Motors, Shangjie) had a gradual February.

Fortunate for them that probably the most direct competitors didn’t fared significantly better, as Xiaomi (5.7%) and Seres (5.5%, down from 6.7%) dropped much more than the Shanghai-based OEM.

Changan (5.5%, up 0.3%) profited from all of this and joined the desk in fifth, kicking Seres out of the highest 5.