TLDR
- BYD shares plunged 6.9% in Hong Kong to their lowest level in approximately one year following a 30% January sales decline
- The electric vehicle maker sold 210,051 vehicles last month, continuing a five-month downward trend
- Geely surpassed BYD in January sales while Leapmotor grew 27%, highlighting intensifying competition in China’s EV market
- International sales rose 43.3% and now represent 48% of total deliveries as domestic demand weakens
- China’s modified subsidy program favors premium vehicles over budget models, pressuring BYD’s core market segment
BYD stock crashed to a 12-month low on Monday after reporting dismal January sales figures. Shares closed 6.9% lower at HK$91 in Hong Kong trading.
BYD Company Limited, BYDDY
The electric vehicle manufacturer sold just 210,051 vehicles worldwide last month. That represents a 30% year-over-year decline and extends a losing streak to five consecutive months.
Shenzhen-listed shares dropped 4.2% to 87.05 yuan, their weakest level since September 2024. The selloff dragged down other Chinese automakers including Geely, Leapmotor, Xiaomi and Xpeng.
Losing Ground to Competitors
BYD’s problems run deeper than falling sales numbers. The company is hemorrhaging market share to aggressive rivals.
Geely overtook BYD in January despite posting flat year-over-year results. Leapmotor delivered 27% growth during the same period.
The technological advantage BYD once held in affordable vehicles has evaporated. Competitors have matched its capabilities while China’s new subsidy structure works against budget-focused manufacturers.
Beijing extended vehicle subsidies in 2026 but switched from fixed payments to price-based incentives. This change reduces benefits for lower-cost cars that dominate China’s market.
Plug-in hybrids make up over half of BYD’s sales volume. Yet this crucial segment fell 28.5% in January, continuing a slide that saw full-year 2025 sales drop 7.9%.
BYD launched upgraded hybrid models with extended-range batteries last month. The new versions haven’t reversed declining demand yet.
China Market Faces Headwinds
The China Passenger Car Association expects domestic auto sales to stagnate this year. The forecast marks the country’s worst performance since 2020.
Eugene Hsiao from Macquarie Capital said the domestic decline exceeded expectations. He noted BYD won’t see meaningful turnaround until new models deliver better value versus rising competitors.
This January marked BYD’s weakest performance for the month since 2020 when COVID-19 disrupted operations. Production dropped 29.1% alongside the sales decline.
International Expansion Shows Promise
Overseas markets provide the one bright spot for BYD. Foreign sales jumped 43.3% in January and now account for 48% of total deliveries.
The company shipped over 100,000 new-energy vehicles internationally last month. BYD targets 1.3 million overseas units in 2026, representing 24% growth from 2025.
That goal marks a reduction from earlier projections of 1.6 million vehicles shared with Citi analysts in November. BYD hasn’t explained the revised target.
New manufacturing facilities are coming online globally. A Hungary plant opens this year alongside existing operations in Brazil and Thailand. Additional plants are planned for Indonesia and Turkey.
Strong international performance helped BYD surpass Tesla as the world’s largest EV seller last year. The company delivered 4.6 million vehicles in 2025, meeting its reduced annual target.
Warren Buffett’s Berkshire Hathaway exited its BYD investment completely last year after holding the position since 2008. BYD shares have dropped nearly 40% since May 2025.
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Source: https://blockonomi.com/byd-byddy-stock-crashes-to-year-low-as-sales-collapse-continues/