Chinese electric vehicle (EV) stocks experienced a sharp downturn on Monday after disappointing January delivery figures. This triggered fresh concerns regarding domestic demand. Hong Kong-listed shares of BYD, a major EV maker, plummeted, hitting a year-low after reporting a 30% year-over-year decrease in deliveries. The drop marks the fifth consecutive month of declining sales for BYD.

Other prominent Chinese EV manufacturers also faced share price declines. Xpeng Inc. saw a 34% drop in deliveries compared to the previous year, while Li Auto experienced an 8% decrease. Even NIO Inc, despite nearly doubling its year-ago figure, saw its shares fall, reflecting seasonal softness and investor anxieties about the sector's growth trajectory amid a broader economic slowdown.

The weak January performance raises questions about the sustainability of the EV boom in China, a market that has been a global leader in EV adoption. Investors are now reassessing growth forecasts and profitability expectations for these companies. Further delivery reports and policy adjustments from Beijing will be crucial for gauging the sector’s future.