CHENGDU, CHINA – SEPTEMBER 28: Two women walk past the Tesla storefront on September 28, 2024, in Chengdu, China. Tesla continues to expand its presence in China, showcasing its electric vehicles and promoting its Gigafactory innovations. (Photo by Cheng Xin/Getty Images)
Cheng Xin | Getty Images News | fake images
tesla Sales of electric vehicles made in China rose during the first two months of 2026 from a year earlier, recovering some of the ground lost to China’s BYD.
Combined January and February sales of Tesla electric vehicles made in China rose more than 35% to 127,728, up from 93,926 a year earlier, according to data released Thursday by the China Passenger Car Association (CPCA).
The figure was adjusted to take into account the seasonal slowdown in sales during the two-week Chinese New Year holiday, which took place in mid-February.
The combined sales volume of Tesla’s Shanghai Gigafactory, which produces the Model 3 and Model Y for domestic and overseas markets in Europe, Asia-Pacific and elsewhere, was second only to BYD, which reported a 36% decline in year-on-year deliveries during the same period.
BYD unseated Tesla as the world’s largest EV seller, by calendar year, for the first time in 2025, but Tesla’s recent delivery figures suggest demand remains relatively healthy, as the combined sales volume of Tesla’s China-made EVs remains more than double that of the next closest automaker, Leapmotor.
Reuters also reported last week that new registrations of Tesla’s electric vehicles, an indicator of sales, rose broadly across Europe in February, most of which are exported from Tesla’s factory in Shanghai.
Tough competition
Still, there are few signs that the American automaker is prepared to catch up to BYD’s considerable lead in domestic and foreign sales.
BYD’s new Blade battery and its charging capabilities, touted to be able to achieve a 97% charge from 10% in just nine minutes, were unveiled last week to widespread critical acclaim, as they were said to overcome common concerns about EV battery ranges.
BYD’s growing presence abroad also allows the Shenzhen-based automaker to maintain a strong lead over its domestic competitors, with its export figures surpassing domestic sales for the first time in February.
“BYD’s hedge is exports: (the company’s) overseas sales surpassed 1 million units in 2025 for the first time, a cushion that purely domestic rivals cannot match,” Leon Cheng, head of the mobility practice at management consulting firm YCP, told CNBC.
Other Chinese automakers have also become increasingly competitive by offering a wider range of features at more affordable prices, undercutting sales of both BYD and Tesla.
In February, Geely’s The Xingyuan was the best-selling car model in China, surpassing offerings from Tesla and BYD, according to data from Autohome. In the previous month, Xiaomi The YU7 SUV dethroned Tesla’s Model Y as the best-selling car in China.
In its report, the CPCA noted that finalized sales figures for March could provide a better indicator of the trajectory of the EV market overall.
“As various industries quickly return to normal operations after the Spring Festival holiday, the month-on-month growth in production and sales in March will be quite rapid,” the CPCA wrote.
“The period after the Spring Festival is a crucial time for the launch of new products, and many manufacturers launch a large number of new models,” the Association added.
— CNBC’s Evelyn Cheng contributed to this report.
