Chinese auto giant BYD faced an unexpected drop in sales at the beginning of 2026. In January–February, the company sold 400,241 vehicles — 36% less than in the same period last year.
In February, BYD sales amounted to 190,190 cars. The drop reached 9.5% compared to January and immediately 41% compared to February 2025. One of the reasons was the Lunar New Year holidays, which traditionally reduce buyer activity.
However, experts also note more serious factors. The reduction in tax incentives and the decline in consumer confidence are forcing many buyers to postpone purchases. Some customers prefer to wait for new models or clearer conditions for government trade-in programs.
Against the background of difficulties, BYD is confidently increasing exports. In February alone, the company sent 100,600 NEV vehicles abroad — electric vehicles and hybrids. Taking January into account, exports reached 201,082 vehicles.
Meanwhile, other Chinese brands are demonstrating steady growth. Leapmotor sales increased by 19% to 60,126 vehicles, and Xiaomi's electric vehicle division increased sales by 48% — more than 59,000 vehicles.
Sales are growing particularly rapidly for Zeekr (+84%) and Nio (+77%).
The main winner of the beginning of the year was Geely. The company sold approximately 76,000 more vehicles than BYD, and for the first time since 2022, it has surpassed its competitor for two consecutive months.
BYD head Wang Chuanfu warned back in December that competitors are rapidly closing the technological gap. Judging by the current sales dynamics, this competition is already beginning to affect the market.