The Chinese New Energy Vehicle (NEV) market experienced a downturn in early 2026, with overall passenger vehicle sales dropping significantly compared to the previous year. However, despite the broader slowdown, some key players demonstrated strong growth. Huawei’s Harmony Intelligent Mobility Alliance (HIMA) emerged as the top performer in January, delivering 57,915 vehicles – nearly 19,000 more than Xiaomi, which secured the second position.
Market Contraction in Early 2026
Data from the China Passenger Car Association (CPCA) reveals a notable decline in sales during the first eleven days of January. Retail sales reached 328,000 units, a 32% decrease year-over-year, while wholesale figures fell even further at 40% to 381,000 units. The decline is partially attributed to the recent end of NEV tax exemptions, which previously incentivized consumer purchases.
HIMA’s Continued Dominance
HIMA’s January performance marks a 65.6% year-over-year increase. The company leverages a diverse portfolio of five brands – Aito, Stelato, Luxeed, Maextro, and Saic – with Aito driving the bulk of sales. This consistent growth reinforces HIMA’s position as a leading force in the competitive Chinese EV landscape.
Xiaomi’s Rapid Expansion
Xiaomi demonstrated substantial gains, delivering 39,000+ vehicles in January, a 95% increase compared to the same period last year. The company has set an ambitious target of 550,000 vehicle deliveries for the full year, signaling aggressive expansion plans.
Leapmotor Faces Monthly Dip
Leapmotor, formerly a top-performing startup, saw a significant month-over-month drop in January. Deliveries fell 46.9% to 28,364 units, breaking a ten-month streak of leading NEV startup sales, which began in March 2025. Despite the dip, Leapmotor remains an ambitious player, targeting one million vehicles sold in 2026 — a first for Chinese NEV companies.
Leapmotor’s Future Plans
The company is preparing to launch its flagship MPV model, the Leapmotor D99, later this year. The extended-range electric vehicle (EREV) variant will feature an 80.3 kWh battery, while the all-electric version will boast a 115 kWh battery from CATL. Leapmotor claims the EREV will have the longest pure electric range among EREV MPVs globally.
Polestones Gains Traction in Niche Markets
Polestones, a high-end NEV brand under Rox Motor, nearly doubled its January deliveries to 1,028 vehicles. The company is strategically targeting international markets, particularly the Middle East (UAE), where its Polestones Adamas SUV is gaining popularity.
The Chinese EV market remains dynamic, with shifting consumer behavior and changing policies. Despite the early-year contraction, key players are positioning themselves for long-term growth through innovation, aggressive sales targets, and expansion into new markets.
The overall market contraction suggests increased competition and a need for manufacturers to adapt to evolving consumer preferences and regulatory changes. The performance of these key players will be crucial in shaping the trajectory of China’s rapidly evolving EV industry.
