# BYD

China’s Electric-Car Arms Race: From Subsidy Reliance to a Raw, Tech-Driven Market in 2026

China’s electric-vehicle market reached mass adoption in 2025, with penetration approaching 60% and charging and swap networks expanding rapidly. As purchase-tax subsidies are rolled back in 2026, competition will pivot from stimulus-fuelled growth to a fight over technology, cost efficiency, user experience and global expansion.