Nio CEO William Li warns China's car sales will stagnate in 2026 after domestic EV revenue grew 112%, with Tesla dropping out of China’s top ten EV makers and BYD posting its eighth consecutive month of sales decline. Nio plans to quintuple autonomous driving R&D spending and focus on the domestic market despite minimal overseas presence.
William Li forecasts stagnating domestic EV sales in 2026 following a period of rapid expansion, highlighting a slowdown despite Nio’s 112% revenue surge over the past year. This shift marks a transition from the ‘golden era’ of growth to a more mature market environment.
Tesla has fallen out of the top ten EV sellers in China, losing ground to domestic competitors that have capitalized on localized models and pricing strategies. This decline underscores increasing challenges for Tesla in its largest international market.
To counter slowing sales, Nio plans to increase autonomous driving R&D spending fivefold, aiming to develop advanced driver-assistance systems and secure a technological edge. The move reflects a strategic bet on innovation to drive future growth.
BYD recorded its eighth straight month of sales declines, signaling broader headwinds across the Chinese EV sector. The downturn among leading brands illustrates the overall market’s struggle to maintain momentum as incentives taper off and competition intensifies.
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