January tested the resilience of China’s auto market, exposing fault lines for some brands while spotlighting the rare breakout success. Many domestic manufacturers reported sales declines, with BYD among the most notable names to feel the squeeze. Yet even in a cooling climate, certain models found remarkable momentum. None more so than the Xiaomi YU7.

The all electric SUV, positioned as a rival to the Tesla Model Y and styled with more than a passing resemblance to the Ferrari Purosangue, was the best-selling new vehicle in China last month.

Read: This Ferrari SUV Lookalike From China Makes More Power Than The Real One

According to figures shared by Autohome, it moved 37,869 units, comfortably ahead of the Geely Boyue L in second place with 34,176 sales. The Geely Geome Xingyuan followed with 29,007, while the Aito M7 secured fourth with 26,454 units.

The presence of two Geely models in the top 5 best-sellers reflects a strong month for the group, with sales up 1 percent year-on-year to more than 270,000 units. The M7 from Aito, backed by Huawei and Seres, also surged in popularity, as did other models from the brand, helping it deliver more than 40,000 vehicles, a surge of over 80 percent from January 2025.

Sales of the YU7 in China have remained strong in recent months. December saw 39,089 units sold, making it the third best selling new car in China at the time. That figure represented a clear rise from November’s 33,729 and October’s 33,662.

It has also moved decisively ahead of the Tesla Model Y, selling more than twice as many units. The Model Y ranked only 20th last month, with 16,845 sales, a result that would have seemed unlikely not long ago. In fact, it was China’s best-selling model in December.

Familiar Names Climb The Charts

Perhaps the biggest surprises came from Volkswagen. It ranked fifth in China’s top 20 best-selling cars last month, led by the Sagitar with 25,316 units sold. VW also sold 23,481 Lavidas, 21,330 Tiguan Ls, 20,799 Passats, and 19,306 Magotans. In addition, the Nissan Slyphy sold 24,209 units, indicating that not all hope is lost for legacy carmakers in the country.

Things weren’t so rosy for BYD. It sold 205,518 vehicles in China last month across its brands, a significant decline from the 300,538 in January 2025. Only one of its models entered the top 20, the Fang Cheng Bao Ti7, which ranked 18th with 17,116 units sold.

China New Car Retail Sales January 2026

Sources: Autohome, Carnewschina

A new electric subcompact has pulled off a quiet revolution in China’s fiercely competitive car market, topping the charts without the backing of Tesla or BYD. The Geely Galaxy Xingyuan, a fully electric hatchback, has officially become the country’s best-selling vehicle for 2025, racking up 465,775 registrations and ending the two-year reign of the Tesla Model Y.

More: Ford Held The Best-Seller Crown, But GM Outsold It On A Technicality

Known as the Geely EX2 in export markets, the Galaxy Xingyuan was introduced in 2024 and measures 4,135 mm (162.8 inches) in length. It sits in the subcompact category, going up against popular rivals like the BYD Dolphin, Wuling Bingo, and Aion UT.

It blends simple, approachable styling with a well-equipped interior and pricing that stays competitive, currently ranging from ¥65,800 to ¥95,800 ($9,500 to $13,800 at current exchange rates) in China.

GM JV Snags Second Spot

China’s second-best-selling vehicle in 2025 was the compact Wuling Hongguang Mini EV, repeating the success of its earlier version from 2021 and 2022. The pint-sized electric hatchback from the SAIC-GM-Wuling joint venture entered a new generation last year, bringing more playful styling and a new five-door variant. Those updates clearly landed well, helping it reach 435,599 units sold, a huge 82 percent jump over its 2024 total.

Geely Galaxy Xingyuan

The Tesla Model Y, which held the top spot in 2023 and 2024, slipped to third place in 2025. It still put up strong numbers with 425,337 units sold, though that marked an 11.5 percent decline from the year before, even with the launch of a significantly updated version earlier in the year.

More: One in 10 New Cars Sold in Europe Last Month Was Chinese

In fourth place, the BYD Qin Plus sedan registered 387,315 units sold. Available as either a fully electric model or a plug-in hybrid, the Qin Plus had previously held the second spot in both 2023 and 2024 but saw its position slip this year.

The Nissan Sylphy sedan, known as the Sentra in the US, was China’s best-selling model from 2020 to 2022 before Tesla took over. Now down to fifth place with 320,000 sales, it still holds the distinction of being the country’s best-selling non-EV. A new generation has just arrived, which might give it a boost heading into next year.

Source: China Passenger Car Association (CPCA)

Another standout in China’s top 10 for 2025 is the Xiaomi SU7 sedan, which landed in eighth place with 258,164 units sold. The Chinese newcomer made headlines by outselling its direct rival, the Tesla Model 3, which slipped to eleventh with 200,361.

Local Brands Dominate The Charts

According to data from the China Passenger Car Association (CPCA), BYD held onto its lead as the largest manufacturer in China by total volume, selling 3,484,525 vehicles in 2025. Geely followed in second with 2,605,565 units, marking a striking 47% increase over the previous year.

Chinese brands as a whole captured 65 percent of the domestic market, while many foreign automakers that once dominated have struggled to keep up. FAW-Volkswagen secured third place with 1,531,276 sales, but joint ventures from Toyota and Honda have now dropped out of the top five.

Source: China Passenger Car Association (CPCA)