Volkswagen reclaimed car sales dominance in China, the world’s largest auto market, in the first two months of 2026 when Toyota (7203.T), opens new tab ​also regained ground, both overtaking local electric vehicle champion BYD, ‌amid fading subsidies for greener cars. … The legacy automakers’ comeback in the market where they ​have been struggling to catch up with local rivals in EVs comes ​as purchase tax exemptions on electric cars expire and Beijing scales back subsidies for trading in EVs. … BYD, which unseated VW as the biggest carmaker in China by sales in 2024 and held onto the crown last year, fell to fourth place with 7.1% market share in the January-February ​period when its overall ​sales posted ⁠the biggest drop since the pandemic. …