Chinese EV Sales Slow to Lowest Level in Three Years

It’s no secret the electric-vehicle business is slowing — and not just in the United States.

XPeng sales fell 34% year over year, while Li Auto’s slipped 8%. NIO’s sales doubled from a weak January 2025 comparison. (Photo: XPENG Facebook)

January sales figures from several Chinese EV makers underscore the trend, and help explain why companies like Tesla are turning their attention to robots and robo-taxis, Al Root and Janet H. Cho reported for Barron’s Daily.

China’s Li Auto, NIO, and XPeng collectively sold 74,861 vehicles in January, up just 1% from a year earlier and the slowest growth since January 2023.

XPeng sales fell 34% year over year, while Li Auto’s slipped 8%. NIO’s sales doubled from a weak January 2025 comparison.

In the United States, consumers bought 234,171 EVs in the fourth quarter, down 36% from a year earlier, after an EV purchase tax credit expired at the end of September.

Several factors have shifted for Chinese buyers as well, including the end of a full purchase-tax exemption.

Tesla CEO Elon Musk is betting heavily on artificial intelligence through robotics and self-driving vehicles, and devoted much of last week’s earnings call to the topic.

Tesla launched its robo-taxi business in Austin, Texas, in June and plans to operate in nine cities by mid-2026. The company is spending $20 billion on AI this year, up from $9 billion last year.

Rival robo-taxi operator Waymo is reportedly seeking to raise $16 billion at a valuation of $110 billion.