By Stephen Wilmot
Chinese electric-vehicle stocks dropped on Monday after manufacturers reported weak January sales due to waning government support.
Market leader BYD said it sold about 210,000 vehicles in the month- down 30% from January last year and missing expectations, according to Citi.
Analysts were expecting a faltering start to the year after tax breaks were cut at the start of January. Beijing is withdrawing financial support for the EV industry after years of generous subsidies led to excess production capacity and cutthroat competition.
Chinese automakers are responding to the pressure at home by focusing on exports. BYD, which has overtaken Tesla as the world's biggest EV maker, shipped roughly 100,000 vehicles abroad last month, up 51% from a year earlier.
January sales reported by Xpeng, NIO and Leapmotor also fell short of forecasts, while Geely and Xiaomi performed better.
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(END) Dow Jones Newswires
February 02, 2026 05:33 ET (10:33 GMT)
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