Chinese EV makers’ shares skid as sales slide after tax incentive ends

South China Morning PostCenter-RightEN 1 min read 100% complete by Daniel RenFebruary 2, 2026 at 08:00 AM

AI Summary

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Shares of major Chinese EV makers like BYD, Xpeng, and Li Auto fell sharply on Monday following disappointing January sales figures. The sales decline, reported by multiple companies, is attributed to the end of government tax incentives and adjustments to cash subsidy policies. BYD's January deliveries dropped 50% from December, while Xpeng and Li Auto experienced declines of 46.7% and 37.5% respectively. Analysts suggest the removal of government support will create a challenging environment for the EV industry in China, particularly for manufacturers of lower-priced vehicles. The poor sales data has negatively impacted investor confidence, leading to significant drops in the companies' Hong Kong-listed shares.

Key Entities & Roles

Key Player Opposition Context

Shanghai 40% Loyal Wealth Management 50% Nio 60% Ivan Li 60% Hong Kong ×370% Li Auto ×270% China 80% Xpeng ×280% BYD ×390%

Keywords

electric vehicles 90% chinese ev makers 80% ev sales 80% tax incentive 70% purchase tax 60% stock decline 60% delivery outlook 60% market share 50% cash subsidy 50%