Chinese Automakers Report Diverging Sales as Exports Offset Weak Domestic Demand

Dow Jones06-02 11:31
 

By Jiahui Huang

 

Chinese electric-vehicle makers reported mixed sales in May, reflecting an increasingly divided market as overseas demand helps offset a domestic slowdown.

BYD remained the top seller with total deliveries of 383,453 units in May, up 0.3% from a year earlier. The company's exports rose 80% last month to 160,644 new energy vehicles, a category including EVs and hybrids.

NIO was among the strongest performers, with deliveries rising 62% to 37,705 vehicles. Geely Automobile's total vehicle sales edged up 1% to 237,637 cars.

Li Auto and XPeng both reported lower sales last month. Li Auto's sales fell 18% to 33,350 units, while XPeng delivered 32,158 vehicles in May, falling 4.1% compared with a year earlier.

Xiaomi said its deliveries reached more than 30,000 units in May.

China's auto sector is entering an era of slower growth after years of breakneck expansion. Domestic demand has ebbed following a boost from EV tax exemptions and generous government subsidies introduced in 2024 and 2025.

"In the absence of incremental supportive policies, we turn more cautious on the local demand outlook in the remainder of 2026," Nomura analysts said in a note. Nomura said carmakers with strong overseas contributions or have notable growth in terms of local market share should outperform peers.

BYD shares rose 5.6% on Tuesday morning in Hong Kong, while XPeng shares gained 2.7% and NIO shares rose 3.7%. Li Auto shares fell 1.5% and Geely Automobile shares lost 2.7%. Xiaomi shares rose 1.8%.

 

Write to Jiahui Huang at jiahui.huang@wsj.com

 

(END) Dow Jones Newswires

June 01, 2026 23:31 ET (03:31 GMT)

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