Geely Overtakes BYD in January Sales, Signaling Major Shift in China’s EV Landscape

[Market Landscape] Geely achieved sales of 270,000 units in January, surpassing BYD's 210,000 units and ending BYD's nearly four-year streak as the market leader.

Core Trend: China’s Auto Market Shifts from "One Dominant Player" to "Multiple Strong Contenders"

Geely, leveraging its dual-track strategy covering both internal combustion engine (ICE) vehicles and new energy vehicles (NEVs), recorded 270,000 units sold in January 2026—marking the first time it has overtaken fully electrified BYD (210,000 units, down over 30% year-over-year). Chery, with sales exceeding 200,000 units, closely follows behind, establishing a new tripartite competitive格局.

Key Data: NEV Downturn Shows Significant Impact

Due to the phase-out of purchase tax incentives, policy-driven demand exhaustion, and early consumer spending, January’s retail sales of NEVs dropped approximately 40% year-over-year. BYD, having completely discontinued ICE vehicle production, demonstrated weaker resilience compared to rivals with diversified product portfolios.

Industry Impact: Capital Markets Reassess Automaker Strategies

On February 2, auto stocks collectively declined, yet Geely’s share price fell significantly less than those of pure-play NEV manufacturers, reflecting investor confidence in its “steady growth + premiumization” strategy. This signals that the 2026 auto market will face triple pressures: slowing demand, intensified price competition, and reduced policy support.