BYD (BYDDY) Stock: Sales Crash 30% as Competition Eats Into Market Share

TLDR

• BYD stock fell 6.9% in Hong Kong to its lowest level in about a year after reporting a 30% drop in January vehicle sales
• January sales of 210,051 vehicles marked BYD’s fifth straight month of decline and weakest January performance since 2020
• Geely outsold BYD in January while Leapmotor posted 27% growth, eroding BYD’s market share in China’s budget car segment
• Overseas sales jumped 43.3% and now account for 48% of total deliveries as BYD targets 1.3 million international shipments in 2026
• China’s revised subsidy scheme now favors higher-priced vehicles, hurting budget brands as the country’s car market faces stagnation

BYD shares tumbled to their lowest point in roughly a year on Monday. The stock closed down 6.9% at HK$91 in Hong Kong, marking the biggest single-day drop since May 2025.

BYD Company Limited, BYDDY

The sell-off came after BYD reported a 30% plunge in January vehicle sales. The company sold 210,051 vehicles worldwide last month, down from the prior year period.

This marks the fifth consecutive month of declining sales for the Chinese automaker. Production also fell nearly 29% during the same period.

The mainland-listed shares in Shenzhen fared slightly better but still dropped 4.2% to 87.05 yuan. That level represents the lowest point since September 2024.

Other Chinese automakers also took a hit. Geely, Leapmotor, Xiaomi and Xpeng all fell between 1.2% and 6.8%.

Market Share Losses Mount

BYD’s troubles go beyond simple sales declines. The company is losing ground to competitors in its home market.

Geely outsold BYD in January despite flat year-over-year sales. Meanwhile, Leapmotor reported 27% growth in deliveries.

Eugene Hsiao, head of China equity strategy at Macquarie Capital, said the domestic decline was larger than expected. This points to a sharp loss in market share.

BYD once dominated the budget segment with its Dynasty and Ocean model series. But rivals have closed the technological gap.

The company’s strength in affordable vehicles is now working against it. China extended its car subsidy scheme in 2026 but changed the structure.

The new system bases subsidies on vehicle prices rather than fixed amounts. This reduces incentives for lower-priced cars, which make up most of China’s new vehicle sales.

Plug-In Hybrids Still Struggling

Plug-in hybrid vehicles account for more than half of BYD’s total sales. But this segment posted a 28.5% decline in January.

The drop extends a trend that started in 2025 when plug-in hybrid sales fell 7.9% for the full year. BYD launched upgraded hybrid models with longer-range batteries last month in an attempt to boost interest.

China’s overall car market is expected to stagnate this year. The China Passenger Car Association said the country is on track for its worst year since 2020.

International Growth Provides Relief

Overseas markets offer a brighter picture for BYD. Sales outside China jumped 43.3% in January.

International deliveries now represent 48% of total sales. BYD exported just over 100,000 new-energy vehicles last month.

The company is targeting 1.3 million overseas shipments in 2026. That would represent a 24% increase from 2025.

However, this goal is lower than earlier projections. BYD management told Citi in November they were aiming for up to 1.6 million international vehicles.

The company did not explain the downward revision.

BYD is expanding its global manufacturing presence. A new plant in Hungary is expected to open this year.

The automaker already operates facilities in Brazil and Thailand. It has planned assembly plants in Indonesia and Turkey.

Strong international growth helped BYD overtake Tesla as the world’s top EV seller last year. BYD hit its reduced global sales target of 4.6 million vehicles in 2025.

Warren Buffett’s Berkshire Hathaway, which invested in BYD in 2008, fully exited its position last year. BYD’s Hong Kong shares have fallen nearly 40% since May 2025.

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