TLDR
- BYD stock dropped 6.9% to HK$91 in Hong Kong, reaching its lowest point in about one year after January sales fell 30%
- The automaker delivered 210,051 vehicles last month, marking the fifth consecutive monthly sales decline
- Geely overtook BYD in January deliveries while Leapmotor reported 27% growth, showing BYD’s weakening domestic position
- Overseas deliveries jumped 43.3% and now comprise 48% of total sales as BYD pushes international expansion
- China’s restructured subsidy program now benefits higher-priced vehicles, hurting BYD’s budget-focused lineup
BYD stock sank to a one-year low Monday as investors reacted to disastrous January sales data. The Hong Kong-listed shares finished 6.9% lower at HK$91.
The Chinese electric vehicle maker delivered 210,051 vehicles worldwide last month. That marks a 30% drop from January 2025 and continues a troubling pattern of consecutive monthly declines.
Mainland-listed shares in Shenzhen fell 4.2% to 87.05 yuan, touching their lowest level since September 2024. The broader Chinese auto sector took a hit as Geely, Leapmotor, Xiaomi and Xpeng all declined between 1.2% and 6.8%.
Production data mirrored the sales weakness. BYD manufactured 29.1% fewer vehicles in January compared to the prior year period.
Competition Erodes Market Position
BYD is facing mounting pressure from domestic rivals who have closed the technology gap. Geely outsold BYD in January despite recording flat year-over-year sales growth.
Leapmotor posted impressive 27% delivery growth during the same period. The shift demonstrates how quickly BYD is losing its once-dominant position in China’s budget vehicle segment.
Eugene Hsiao at Macquarie Capital said the scale of domestic decline surprised investors. The drop indicates sharp market share losses for BYD.
The company built its success on affordable Dynasty and Ocean model lines. But those products now face stiffer competition from rivals offering similar value propositions.
China’s revised subsidy scheme compounds BYD’s challenges. The government switched from fixed subsidies to price-based incentives in 2026.
This restructuring reduces financial support for lower-priced vehicles that form the bulk of China’s new car market. BYD’s budget focus puts it directly in the crosshairs of this policy change.
Plug-In Hybrid Sales Continue Sliding
Plug-in hybrid vehicles account for over half of BYD’s total deliveries. This critical segment dropped 28.5% in January.
The decline extends a pattern that began in 2025 when full-year plug-in hybrid sales fell 7.9%. BYD introduced upgraded hybrid models with longer-range batteries last month in hopes of reversing the trend.
The China Passenger Car Association projects domestic auto sales will stagnate this year. The forecast represents China’s worst annual performance since 2020.
January marked BYD’s weakest month for the period since 2020 when COVID-19 shutdowns disrupted operations nationwide.
International Markets Offer Growth Path
Export sales provide BYD’s only positive storyline. Overseas deliveries surged 43.3% in January and now represent 48% of total volume.
BYD shipped more than 100,000 new-energy vehicles internationally last month. The company aims for 1.3 million overseas shipments in 2026, a 24% increase from 2025.
However, that target falls short of earlier projections. Management told Citi analysts in November they were pursuing up to 1.6 million international units. BYD hasn’t addressed the downward revision.
Global manufacturing expansion continues. A new Hungary facility launches this year alongside existing plants in Brazil and Thailand. Future sites in Indonesia and Turkey are in development.
Strong export performance helped BYD dethrone Tesla as the world’s top EV seller last year. BYD met its adjusted 2025 target of 4.6 million total vehicles.
Berkshire Hathaway completely exited its BYD stake last year after investing in 2008. BYD’s Hong Kong shares have tumbled nearly 40% since May 2025.
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