Automakers Report Broad Year-on-Year Sales Growth but Widespread Month-on-Month Declines in January

[Market Dynamics] In January, automakers generally saw year-on-year sales growth but widespread month-on-month declines, resulting in a lackluster 'strong start' to the year.

Key Developments: Geely Overtakes BYD; Seres Doubles Its Sales

Geely achieved month-on-month sales growth in January and surpassed BYD; Seres Group doubled its sales year-on-year. SAIC led the market with wholesale deliveries of 320,000 units, while GAC, Chery, and others also posted year-on-year growth.

Key Data: Most Automakers See Month-on-Month Declines; New Energy Vehicle Startups Show Widening Divergence

Due to full purchase tax exemptions in December 2025 and year-end sales pushes, the new energy vehicle (NEV) market broadly declined month-on-month in January 2026. Among NEV startups, Harmony Intelligent Mobility and Xiaomi overtook Leapmotor, while Li Auto and XPeng failed to achieve a strong start. NIO reported a year-on-year sales increase of nearly 100%.

Strategic Context: Policy Transition Fuels Consumer Caution

Starting January 2026, the purchase tax exemption for NEVs was halved, and automakers ceased covering the tax difference themselves. Combined with unclear local subsidy policies, this has intensified consumer hesitation, putting pressure on retail sales.