Tesla's China-made electric vehicle sales increased by more than 35% in the first two months of 2026, reaching 127,728 units compared to 93,926 units in the same period the previous year, according to data from the China Passenger Car Association (CPCA) [1]. This growth was adjusted for the seasonal slowdown during the Chinese New Year holiday in mid-February [1]. Despite this surge, Tesla's sales volume from its Shanghai Gigafactory was still second to BYD, which experienced a 36% year-over-year decline in deliveries during the same period [1].
BYD had overtaken Tesla as the world's largest EV seller on a calendar-year basis in 2025, but Tesla's recent delivery figures indicate that demand remains relatively healthy, with its China-made EV sales more than double those of Leapmotor, the next closest automaker [1]. Reuters reported that new registrations for Tesla's EVs, mostly exported from Shanghai, rose broadly across Europe in February [1]. However, there is little indication that Tesla is poised to catch up to BYD's significant lead in domestic and overseas sales [1].
BYD unveiled its new Blade battery and charging capabilities last week, claiming a 97% charge from 10% in just nine minutes, which received critical acclaim for addressing common EV battery range concerns [1]. BYD's overseas sales exceeded domestic sales for the first time in February, and its export figures crossed 1 million units in 2025, providing a buffer against purely domestic rivals, according to Leon Cheng of YCP [1].
Competition in the Chinese EV market is intensifying, with other automakers offering more features at affordable prices. In February, Geely's Xingyuan was the best-selling car model in China, surpassing Tesla and BYD, while Xiaomi's YU7 SUV dethroned Tesla's Model Y as the best-selling car in January [1]. The CPCA noted that finalized sales figures for March could offer a clearer picture of the broader EV market's trajectory, as industries return to normal operations after the Spring Festival holiday [1].
CONCLUSION
Tesla's China sales showed strong growth in early 2026, but BYD remains the market leader despite a sharp drop in domestic deliveries. BYD's technological advancements and expanding overseas footprint continue to reinforce its competitive edge. The Chinese EV market is becoming increasingly competitive, and March sales data will be crucial for assessing future trends.