BYD (BYDDF) (BYDDY) reported a sharp drop in January vehicle sales, extending a months-long downturn as the Chinese automaker grapples with slowing demand at home and mounting competitive pressure.
The company sold 210,051 vehicles worldwide last month, down 30.1% from a year earlier, according to a regulatory filing. Production fell nearly in step, declining 29.1%, marking the fifth consecutive monthly contraction.
Plug-in hybrids (BYD’s largest segment, accounting for more than half of total sales) posted a 28.5% year-over-year decline in January, continuing a slide that began in 2025. The company rolled out upgraded hybrid models with longer-range batteries last month to revive interest in its value-oriented lineup.
Overseas markets remain a relative bright spot. BYD exported just over 100,000 new-energy vehicles in January and is targeting 1.3 million international shipments this year, a 24% increase from 2025. That goal, however, is lower than earlier ambitions shared with investors late last year. BYD did not explain the revision.
The automaker is expanding its manufacturing footprint abroad, with a new plant in Hungary expected to open this year, complementing existing operations in Brazil and Thailand, and planned assembly facilities in Indonesia and Turkey.
Strong growth overseas helped BYD (BYDDF) (BYDDY) overtake Tesla (TSLA) as the world’s top EV seller last year, offsetting pressure in China from rivals such as Geely and Leapmotor in the budget segment.
BYD (BYDDF) (BYDDY) hit its reduced global sales target of 4.6 million vehicles in 2025 and has yet to set a goal for 2026. Looking ahead, analysts expect China’s auto market to stagnate as government subsidies for lower-priced vehicles are scaled back, adding strain for BYD and other manufacturers focused on affordability.