January Auto Market Slumps Overall; Geely Defies Trend with 270,000 Sales Surge, Xiaomi Overtakes Leapmotor in Deliveries

In January 2026, China's auto market generally saw a month-over-month decline. The China Passenger Car Association (CPCA) estimates that retail sales of narrow-definition passenger vehicles totaled approximately 1.8 million units, down 20.4% from the previous month. Consumer sentiment remained cautious due to factors including the expiration of the halved purchase tax incentive, demand pulled forward by year-end promotions, and the delayed rollout of local government subsidies. Among new energy vehicle startups, Xiaomi Auto delivered 39,000 vehicles, surpassing Leapmotor (32,100 units) for the first time, though both companies recorded month-over-month declines. Deliveries from NIO, XPeng, and Li Auto fell to 27,200, 20,000, and 27,700 units respectively, all showing significant month-over-month drops. Among traditional automakers, Geely stood out with sales reaching 270,000 units, achieving year-over-year and month-over-month growth. In contrast, BYD (210,000 units) and Chery (200,000 units) both posted declines. SAIC Motor and GAC Group reported year-over-year growth but also experienced month-over-month decreases. Export sales emerged as a bright spot, with Geely, Chery, and BYD all reporting substantial increases in overseas deliveries.