Tesla faces strong Chinese rivals in Lunar New Year despite overall declines in EV sales

Sales of electric vehicles in China recorded significant drops in February 2026, influenced by the extended Ano Novo Lunar holiday, which lasted nine days and drastically reduced working days for production and deliveries. Fabricantes like BYD, Xpeng and Xiaomi faced significant declines compared to the same period last year, while Nio stood out with robust growth. The month had just 16 working days, which worsened the seasonal impact on the world’s largest automotive market.

The Ano Novo Lunar holiday took place between February 15th and 23rd, a longer period than in the previous year, when it fell mostly in January. Essa calendar difference makes year-to-year comparisons more severe for automakers. Muitas companies reported monthly and annual reductions, but some managed positive gains despite adverse conditions.

Seasonal impact on the electric vehicle sector

BYD deliveries totaled 190,190 units of new energy vehicles in February, representing a 41.1% drop compared to the same month in 2025. Essa reduction marks the sixth consecutive month of decline for the company, which leads the EV segment globally. Domestic sales suffered even more, with a greater impact than exports, which maintained a good performance.

Xpeng delivered 15,256 vehicles in the period, which corresponds to a reduction of 49.9% year on year and 23.8% compared to January. The company attributes part of the drop to the holiday and the weakening of national government incentives. Apesar In addition, the company continues to focus on autonomous driving technologies to recover ground.

Nio stands out with significant growth

Nio delivered 20,797 vehicles in February, achieving an increase of 57.6% compared to February 2025. Esse result represents one of the best performances of the month among the main players. The main brand contributed 15,159 units, an increase of 65.8% year on year, despite a drop of 27.45% compared to the previous month.

The company is running extended promotions to boost spring sales. Battery swapping technology continues to be a competitive differentiator in the Chinese market. Esse advance occurs in a context where many rivals face seasonal difficulties.

Li Auto and Xiaomi record mixed variations

The Li Auto sold 26,421 units in February, a slight increase of around 158 vehicles compared to the same period last year. The company specializing in plug-in hybrids maintained relative stability despite the long holiday.

Xiaomi delivered just over 20,000 electric vehicles, a significant drop compared to January, but practically stable performance year on year. The new automaker in the segment continues to expand its presence with models that are competitive in price and technology.

General context of the Chinese market

The extended holiday reduced activity across the automotive sector, with production and sales impacted in February. Montadoras adjust strategies for the post-holiday period, including incentives and launches. The new energy vehicle market remains dynamic, with intense competition between local and foreign brands.

The combination of seasonal factors and reduced subsidies influences monthly results. Empresas that invest in innovation and exports are able to mitigate domestic losses. The sector expects gradual recovery in the coming months.

Exports as a positive point for some brands

Several Chinese companies reported robust export growth during February. BYD, for example, maintained high volumes abroad, offsetting part of the internal declines. Esse movement reflects the global expansion of local brands.

Competition in the domestic market remains fierce, with a focus on affordable prices and advanced technologies. Automakers are preparing actions to capture pent-up demand after the holidays.

The varied performance highlights the resilience of certain brands amid challenging conditions. The electric vehicle sector in China continues to evolve.