Stock Slide and Slow Sales: What’s Happening in China’s E.V. Market?

BYD rose from a struggling battery maker to the world’s largest electric vehicle manufacturer, overtaking Tesla and expanding quickly in Europe and Latin America while eyeing Canada. Investors have cooled on that ascent: the company’s stock has fallen roughly 40 percent from its peak last May, and Chinese E.V.

shares slid further after weak January sales. Mounting competition, shorter production cycles and fading government support are squeezing profits and growth. After growing 28 percent last year, BYD’s electric vehicle deliveries in January fell about 33 percent from a year earlier, and overall new electric vehicle sales dropped nearly 20 percent, the China Association of Automobile Manufacturers said.

John Paul MacDuffie warned that Chinese firms are "maxing out the number of people for whom it makes sense" to buy an E.V. Beijing had waived a 10 percent tax on new car purchases for years; this year the tax was reimposed at half the original rate, with the full tax expected to return after 2027.

China, Beijing

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