China's EV deliveries dropped over 40% in January due to rising costs and reduced government support, according to the South China Morning Post.
Electric vehicle deliveries in mainland China fell more than 40 per cent in January as rising costs and reduced government support weighed on demand, reported Hong Kong's South China Morning Post.
Preliminary data from the China Passenger Car Association showed about 900,000 vehicles sold last month, down 42.3 per cent from 1.56 million in December. The figures include retail sales, exports, and dealer stockpiling.
The decline marked a second consecutive monthly drop and matched analysts' expectations for softer demand in 2026 as subsidies are phased out.
'The once fast-growing EV sector has hit a speed bump this year as government stimulus retreats,' said hedge fund manager Zhou Ling of Shanghai Shiva Investment. 'With cost pressures already building, it will become increasingly difficult for manufacturers to make profits.'
