Sales of entry-level electric hatchbacks in China experienced a sharp decline in January, with the long-standing market leader, BYD, falling out of the top three, according to data from iAuto.lv. The downturn follows the end of a purchase tax exemption for modern energy vehicles (NEVs) in China.
While competition was fierce and volumes high in December, only two models surpassed 10,000 units sold in January. Geely’s Geome Xingyuan led the market with 29,007 units, despite a 19% month-on-month decrease. SAIC Motor’s MG4 surprisingly took second place, reaching 10,007 units. The updated MG4 is now offered with a solid-state battery, marking a technological advancement in the segment below 100,000 yuan (approximately €13,000).
Long-time favorites suffered losses in market share. BYD’s Dolphin and Seagull models slipped to fifth and sixth place, respectively, dropping out of the top three. Wuling’s Hongguang Mini EV sold fewer than 10,000 units for the first time since its debut, while the Wuling Bingo and Bingo S maintained their positions in the middle of the rankings.
Arcfox T1 and Nio’s Firefly also appeared in the top ten, with Firefly continuing its growth and initiating deliveries to overseas markets. GAC Aion’s Aion UT, a budget model with a starting price under 70,000 yuan (approximately €9,100), completed the top ten.
The segment, priced between 60,000 and 100,000 yuan (€7,800 – €13,000), is experiencing not only fluctuating demand but also rapid technological development, with LiDAR systems and new-generation batteries, including semi-solid-state solutions, entering lower-priced models.
According to a report from Kursors.lv, BYD surpassed Ford in global auto sales in 2025, delivering approximately 4.6 million vehicles, a 7.7% increase year-over-year, while Ford’s global sales declined to 4.4 million units. This marks the first time a Chinese brand has broken into the world’s top six automakers. BYD’s success is attributed to its focus on electric and plug-in hybrid vehicles, while Ford still relies heavily on internal combustion engines.
BYD is also aggressively expanding its international presence, aiming to sell 1.5 million electric vehicles overseas in 2026, doubling its projected sales of 900,000 to 1 million units for 2026, as reported by Parauto.lv. This expansion will focus on Europe, Asian countries, and North America, with new production facilities planned in Thailand, Indonesia, Mexico, and Hungary.
Market participants are now awaiting February and March data to determine whether January’s decline is a temporary correction following the tax policy change or the beginning of more profound shifts in the 2026 electric hatchback cycle.
China’s New Auto Top 10 – January:
- Geely Geome Xingyuan – 29,007 units
- MG4 – 10,007 units
- Wuling Hongguang Mini EV – 7,133 units
- Wuling Bingo S – 6,077 units
- BYD Dolphin – 5,699 units
- BYD Seagull – 5,329 units
- Arcfox T1 – 4,239 units
- Firefly – 2,737 units
- Wuling Binguo – 2,620 units
- Aion UT – 2,200 units