BYD Navigates Sales Decline with Export Growth and New Technology Push

China’s leading new energy vehicle (NEV) manufacturer, BYD, experienced a challenging start to 2026, with a significant decline in domestic sales. However, strong export figures and the anticipation of disruptive new technologies offer a potential path to recovery.

Sales Decline in January 2026

BYD sold 210,051 NEVs in January, a 30.11% decrease year-on-year, according to company reports [CnEVPost]. Passenger NEV sales also fell, reaching 205,518 units, down 30.67% compared to January 2025 [CnEVPost]. Commercial NEV sales saw a slight increase of 10.78% year-on-year, reaching 4,533 units, but still decreased by 19.26% from December 2025 [CnEVPost].

February NEV sales totaled 190,190 units, marking the sixth consecutive month of decline [CnEVPost].

Export Growth as a Bright Spot

Despite the domestic downturn, BYD’s export performance remains strong. In January, the company exported 100,482 NEVs, a 51.47% increase year-on-year [CnEVPost]. Exports have exceeded 100,000 units for four consecutive months [CnEVPost].

BYD’s new car registrations in Europe surged 165% in January, reaching 18,242 units, surpassing Tesla’s 8,075 units [CnEVPost].

New Models and Technology on the Horizon

BYD is preparing to launch several new models and technologies in an attempt to reverse the sales decline. These include the Datang SUV, the Denza Z9GT and updated Yangwang models [CnEVPost]. The company is also teasing the launch of “disruptive technology” on March 5th [CnEVPost].

The updated Denza Z9GT boasts a battery range of 1,036 km, representing a 64% increase over the previous model’s 630 km range [CnEVPost].

Competitive Landscape

BYD narrowly retained its position as China’s largest NEV maker by retail sales in January, with a 15.8% market share, only 0.3 percentage points ahead of Geely [CnEVPost]. Tesla’s January retail sales in China were the lowest since November 2022, partially due to increased exports from its Shanghai factory [CnEVPost].

Financial Strategies

BYD has joined other automakers in China’s “financial war” by launching a 7-year low-interest financing plan for its Ocean lineup and Fang Cheng Bao sub-brand [CnEVPost]. This follows similar offers from over a dozen other automakers.

Company Overview

Founded in February 1995 by Wang Chuanfu, BYD is China’s largest NEV maker and one of the world’s largest battery manufacturers [CnEVPost]. The company is headquartered in Shenzhen and trades on the Hong Kong Stock Exchange (HKG: 1211) [CnEVPost]. In 2024, BYD reported revenue of RMB 777.10 billion [CnEVPost].