BYD vehicle sales declined sharply in January 2026, extending a year-on-year downturn to a fifth consecutive month. Total deliveries fell by about 30%, highlighting continued pressure in China’s increasingly competitive electric vehicle market.
Production volumes dropped at a similar pace, reflecting softer demand rather than supply-side disruptions. Plug-in hybrid models, which make up more than half of BYD’s sales mix, recorded a decline of roughly 28% year on year despite recent upgrades offering longer electric-only range.
China’s EV market has cooled after years of rapid growth. Reduced government incentives, intense price competition and rising market saturation have weighed on consumer demand and manufacturer margins.
Key factors behind the sales decline
- Slower overall growth in China’s EV market during 2025
- Ongoing price war compressing margins across the sector
- Reduced subsidies for new-energy vehicles
- Higher market concentration favoring the largest players
While domestic momentum has weakened, BYD is shifting its focus abroad. Overseas shipments rose strongly last year and now represent a growing share of total deliveries.
BYD’s international strategy highlights
| Focus area | Details |
| Overseas sales target | Around 1.3 million vehicles in 2026 |
| Expected growth | About 25% increase vs 2025 |
| Manufacturing expansion | Hungary, Brazil, Thailand, Indonesia, Turkey |
By accelerating localization and international production, BYD aims to offset domestic headwinds and sustain long-term growth as global demand for electrified vehicles continues to evolve.
