The Chinese EV giant BYD is experiencing a brutal start to 2026.
In January, the corporation sold 30% fewer cars than in the previous year—the fifth consecutive month of decline. The stock plummeted in Hong Kong by up to 8% and dragged the entire sector down: Xpeng -8%, Nio -6%, Xiaomi and Geely also in the red.
Details & Figures
BYD sold only 210,051 vehicles worldwide in January—30% below the previous year and 50% below December. Production also fell by 29%.
The Reason: China's new EV subsidies are now based on vehicle price instead of a flat rate. This makes cheap EVs—BYD's core business—less attractive.
Geely sold around 60,000 more cars than BYD in January and took market leadership in China for the first time.
Silver Lining Abroad
Despite the domestic slump, there is a massive sign of life from abroad:
- Export Record: BYD shipped 100,482 cars abroad in January (+51% year-on-year).
- Structural Change: Almost half of all BYD sales now take place outside of China. Thus, BYD is rapidly transforming from a Chinese champion into a true global player.
- 2026 Goal: The corporation is targeting 1.3 million exports for the full year—an increase of 24% compared to 2025, even if the target was internally corrected slightly downwards from 1.6 million.
Good to know: Why January can be deceptive
Chinese New Year falls on February 17th this year (2025: January 29th). During this time, factories close, and sales traditionally collapse. Analysts recommend looking at the first quarter as a whole—only then will the true picture emerge.
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