What To Know
- The decline follows an earlier slowdown in 2025 and reflects intense competition from rivals such as Geely and Leapmotor, particularly in the budget segment.
- New manufacturing facilities in Hungary are set to begin operations this year, adding to existing plants in Brazil and Thailand, with additional assembly sites planned in Indonesia and Turkey.
International Business News: Sharp January Drop Signals Sustained Pressure
China’s leading electric vehicle maker BYD has reported another steep fall in sales, extending a downturn that is raising fresh concerns about the health of the domestic EV market. Vehicle deliveries declined 30.1 percent year on year in January, marking the fifth consecutive monthly drop and highlighting how competitive pressures are eroding growth even for market leaders.
Image Credit: BYD
According to a recent stock exchange filing, BYD sold 210,051 vehicles globally during the month, while production fell 29.1 percent, continuing a slide that began in mid-2025. Exports of new energy vehicles reached 100,482 units, providing some relief. This International Business News report underscores how overseas demand is increasingly vital to offset weakening sales at home.
Hybrid Models Fail to Reverse Domestic Weakness
A major drag remains BYD’s plug-in hybrid segment, which contributes more than half of total sales. Despite launching upgraded hybrid models with longer-range batteries in January, sales in this category dropped 28.5 percent. The decline follows an earlier slowdown in 2025 and reflects intense competition from rivals such as Geely and Leapmotor, particularly in the budget segment.
The company’s struggle comes as China’s auto market faces structural headwinds, including reduced government subsidies for lower-priced vehicles and slowing consumer demand, making price wars increasingly difficult to sustain.
Overseas Expansion Becomes Growth Lifeline
International markets remain BYD’s strongest support. The automaker is targeting 1.3 million overseas vehicle shipments this year, a significant increase from last year, though below earlier expectations. New manufacturing facilities in Hungary are set to begin operations this year, adding to existing plants in Brazil and Thailand, with additional assembly sites planned in Indonesia and Turkey.
Outlook Clouded Despite Global Leadership
Although BYD narrowly met its reduced global sales target last year and overtook Tesla as the world’s top EV seller, the road ahead remains uncertain. Continued overseas growth, cost discipline, and innovation will be critical as domestic demand softens and competition intensifies across global markets.
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