Tesla China Sales Rise 9% in January Amid EV Market Slowdown

Tesla sold 69,129 electric vehicles made in China in January, up 9.3 percent from the year before. This happened even as the whole new energy vehicle market in China slowed down after a strong end to 2025. The sales figures cover vehicles sold inside China and those shipped out from the Shanghai factory.

Background

China's car market often starts the year slow. Buyers rush to buy at year's end to catch old deals or tax breaks. In late 2025, people stocked up on new energy vehicles ahead of changes. Those changes included a new 5 percent purchase tax and shifts in trade-in help from the government. This left January 2026 quieter than December.

The China Passenger Car Association tracks these sales. They put total new energy vehicle wholesale at 900,000 units for January. That is up just 1 percent from January last year. But it dropped 42 percent from December's high numbers. New energy vehicles include pure electrics and plug-in hybrids.

Tesla's Shanghai plant, known as Giga Shanghai, makes Model 3 and Model Y cars. These go to Chinese buyers and overseas markets like Europe. Last year, Tesla faced tough times. Its full-year China sales fell 7.1 percent in 2025. That came from weaker demand in Europe and more competition at home. Tesla's share of China's EV market dropped to 8 percent from 10 percent the year before.

Other big players struggled too. BYD, the top seller, moved 210,051 new energy vehicles in January. That was down 30 percent from last year and 50 percent from December. Geely came in second with 124,252 units. Tesla took third place, up from fourth last month. Changan dropped to ninth.

"In January, Tesla's Giga Shanghai wholesale sales (local in China and exports) were 69,129 Model 3 and Model Y. This is +9.3% year-over-year and -28.9% month-over-month." – Roland Pircher, Data Analyst

Key Details

Tesla's January number beat last year's 63,238 units by 9.32 percent. But it fell 28.86 percent from December's 97,171 units. This drop matches the market pattern. Most makers saw sales fall after the year-end push.

To fight the slowdown, Tesla started a big financing deal on January 6. It offered low-interest loans up to seven years long for all its China-made cars. No other company had gone that far before. This pulled in buyers early in the month.

Competitor Moves

Others quickly copied the idea. Xiaomi, Li Auto, Xpeng, and Nio all rolled out seven-year low-interest plans. Tesla's first-mover edge likely grabbed extra sales before rivals caught up. These deals made monthly payments lower, helping in a time of higher taxes and unsure subsidies.

BYD leads with mass-market cars at lower prices. Geely follows with a mix of electrics and hybrids. Tesla focuses on premium models. Its growth stands out against BYD's drop. This could show buyers picking Tesla's brand or deals in the higher-end space.

The association will release more details later this month on actual deliveries in China versus exports. Wholesale numbers include cars sent to dealers or ports.

What This Means

Tesla's steady year-on-year gain shows it holds ground in a tough spot. While the market shrank month-to-month, Tesla grew over the year. This puts it ahead of some local rivals. Third place means it stays a top player behind BYD and Geely.

The financing push worked. It not only boosted Tesla but set off a chain reaction. More easy loans could keep demand alive through early 2026. But higher taxes might still weigh on buyers. Trade-in programs are changing, which adds uncertainty.

For the full year ahead, exports from Shanghai matter a lot. Europe sales dipped last year, but Tesla plans updates like better self-driving software. Approval there could help. In China, competition grows as more companies add models.

January gives Tesla a good start. It beat expectations in a slow month. If this holds, it could rebuild market share lost in 2025. The EV world in China keeps shifting fast. Makers that adjust quick, like with these loan deals, come out ahead.

Tesla now watches February. Lunar New Year holidays often mix up sales. But the early signs point to strength from Giga Shanghai.