CHENGDU, CHINA – SEPTEMBER 28: Two women walk past a Tesla store on September 28, 2024 in Chengdu, China. Tesla continues to expand its presence in China by showcasing electric vehicles and fostering Gigafactory innovation. (Photo by Chen Xin/Getty Images)
Chen Xin | Getty Images News | Getty Images
Tesla’s Sales of Chinese-made electric vehicles rose year-on-year in the first two months of 2026, regaining some of the ground lost to China’s BYD.
Tesla sold a total of 127,728 Chinese EVs in January and February, up more than 35% from 93,926 a year earlier, according to data released by the China Passenger Car Association (CPCA) on Thursday.
The figure was adjusted to take into account the seasonal sales slowdown during the two-week Lunar New Year holiday in mid-February.
The total sales volume of Tesla’s Shanghai Gigafactory (which produces Model 3 and Model Y for domestic and international markets such as Europe and Asia Pacific) was second only to BYD, which reported a 36% year-on-year drop in deliveries during the same period.
BYD pushed Tesla to become the world’s largest EV seller on a calendar year basis for the first time in 2025, but Tesla’s recent delivery statistics suggest demand is relatively healthy, as Tesla’s total Chinese EV sales are still more than double that of the next closest automaker, Leap Motor.
Reuters also reported last week that new registrations of Tesla EVs, which it sells on behalf of, rose broadly across Europe in February, with most of them being exported from Tesla’s Shanghai factory.
fierce competition
Still, there are few signs that the American automaker is ready to catch up to BYD’s significant lead in domestic and international sales.
BYD’s new Blade battery and charging feature, touted to be able to achieve a 10% to 97% charge in just nine minutes, was announced last week to critical acclaim for overcoming common concerns about EV battery range.
BYD’s expansion of its overseas footprint has enabled the Shenzhen-headquartered automaker to maintain a strong lead over domestic competitors, with exports exceeding domestic sales for the first time in February.
“BYD’s risk hedge is exports. (The company’s) overseas sales exceeded 1 million units for the first time in 2025. This buffer cannot compete with purely domestic rivals,” Leon Chen, head of the mobility practice at management consulting firm YCP, told CNBC.
Other Chinese automakers are also increasing their competitiveness by offering broader features at more affordable prices, chipping away at BYD and Tesla’s sales.
In February, Geely’s According to Autohome data, Xingyuan has surpassed products from Tesla and BYD to become China’s best-selling car model. In the month before that, Xiaomi’s The YU7 SUV has dethroned Tesla’s Model Y as China’s best-selling car.
The CPCA said in its report that March’s final sales figures could provide a more accurate gauge of the trajectory of the broader EV market.
“The month-on-month growth rate of production and sales in March will be quite rapid as various industries will quickly return to normal operations after the Lunar New Year holiday,” CPCA said.
“The post-Chinese New Year period is an important period for new product launches, with many manufacturers launching a large number of new models,” the association added.
—CNBC’s Evelyn Cheng contributed to this report.
