Most Automakers See Year-on-Year Sales Gains but Month-on-Month Declines in January 2026 Amid Lunar New Year and Policy Shifts

In January 2026, China's auto market saw a widespread month-on-month decline in overall sales, primarily due to the approaching Spring Festival, the phase-out of new energy vehicle (NEV) subsidies, and the conclusion of promotional campaigns. However, most automakers still reported year-on-year growth. NIO delivered 27,182 vehicles across its three brands, nearly doubling its deliveries compared to the same period last year but down 43.5% from December 2025. Zeekr and Xiaomi Auto also posted year-on-year increases of nearly 100%, though both saw month-on-month declines of around 20%. Harmony Intelligent Mobility Alliance (HIMA) recorded a 65.6% year-on-year increase but a 35.4% drop from the previous month. Leapmotor, Voyah, and IM Motors all delivered strong year-on-year performances, yet each experienced a month-on-month decline. XPeng, BYD, and Li Auto, meanwhile, saw declines both year-on-year and month-on-month. Industry analysts noted that many consumers are holding onto their cash—adopting a "wait-and-see" stance—anticipating clearer information on new models, government policies, and pricing. With the implementation of the 2026 policy halving the purchase tax for NEVs and a wave of new model launches expected, the auto market is poised for a swift recovery.