Hello, according to a fresh news in The Wall Street Journal, Chinese automotive brands experienced a serious sales decline in February when the incentives given to new generation energy-consuming vehicles (NEV) in the Chinese market were cut since the beginning of the year. For example, BYD sales decreased by 190 thousand units in February compared to last year. Within this sales figure, battery electric ones (BEV) sold 6% less with 79,500 units.
Sales of the XPeng brand, which stands out in autonomous driving technologies, decreased by 10,000 units to 15,200 units. The second largest Chinese manufacturer, Geely, lost sales to 154,800 units. This is not the case with hybrid (HEV) car sales. For example, Li-Auto recorded a slight increase compared to last year with 26,400 sales in February. As for why this is so; The Chinese automotive market has been facing declining demand and intense competition since it entered 2026.
For the first time in two years, sales are falling. China Passenger Automobile Association data shows that the total monthly sales of NEV vehicles decreased to 596 thousand units. Of course, let’s say that the New Year holiday in China also had an impact on these falling figures. After all, it seems inevitable that the Chinese state’s cut of incentives will have a negative impact on domestic sales. However, we will see if the Chinese administration will bring incentives to the agenda again, considering the significant amount of spare capacity in Chinese brands, up to P, and the devastating impact of possible price wars.
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