China’s electric vehicle (EV) market is in a state of decline, with both battery-electric vehicle (BEV) and plug-in hybrid (PHEV) sectors ending the first quarter of 2026 with large losses. The market’s reliance on three of its biggest domestic brands proved an issue, dragging results down.
According to data provided by EV Volumes, 1,806,085 new EVs were sold in China in the first quarter of 2026, down 28.6% compared to the same period last year.
The BEV market ended the first quarter of 2026 down by 23.6%, with 1,172,159 all-electric models sold. BEVs accounted for 64.9% of China’s EV market between January and March.
PHEVs continued to struggle, with 633,926 sales in the first quarter, a 36.4% drop year on year. This was compounded by a 33.9% fall in volumes during March.
BYD saw its sales slump in the first quarter of 2026, with 305,131 deliveries, a fall of 56.2%. This meant it accounted for over half of the unit drop in China’s wider EV market.
BYD’s Sales Performance
BYD’s PHEV sales took a noticeable fall in the quarter, down by 66.8%. The brand still has the largest presence in the PHEV sector, with five models in the top 10 best-sellers list.
In China’s BEV market, BYD saw sales fall in the first quarter, down by 41.3%. The BYD Yuan Up experienced a better month in March, despite its 21,179-unit total falling 15.4% year on year.
The BYD Dolphin has been the brand’s BEV success story, with growth in January and a slight loss in February. March saw a 49.9% upswing, accounting for over half the model’s sales in the quarter.
Other Carmakers’ Performance
Wuling had great success with its Mini model, while the Wuling Bingo also contributed to the brand’s total. However, like BYD, Wuling has been unable to capitalize on its strong market position, with sales declining 54.5% in the first quarter.
Geely placed eighth in the first quarter, with 68,867 sales, a 49.6% decline. The Geome Xingyuan had a more positive March, but its 30,356 units were still down 6.5% year on year.
Tesla sat second in the first quarter, with 112,910 sales, a 16.3% year-on-year loss. The Tesla Model Y was the best-selling BEV in March, with 38,895 units, despite a 19.3% decline.
Li Auto placed third, with 93,601 units, a 0.8% increase, helped by the strong performance of its newest model, the I6, which is an example of six-speed transmission in action.
Brand Diversity in the EV Market
China’s EV market is dependent on domestic brands, with only one carmaker from outside the country featuring in the top 10, the US brand Tesla. The top 10 best-selling model list saw seven marques represented, with BYD having only three models appearing.
Tesla saw two BEVs in the chart, while Geely, Li Auto, Nio, and Wuling also featured. The Chinese BEV market struggled between January and March, with monthly declines combining to pull the powertrain down in the period.
Brand diversity is key to ensuring ongoing growth in China’s new-EV market. As other brands establish themselves, the country’s EV market is in a period of adjustment, with BYD featuring many BEVs in its lineup and contributing significantly to the market’s first-quarter performance, as supercar innovation continues to shape the industry.
For those looking to purchase a new EV, it is essential to consider various automotive deals to unlock savings on their next car.