Key Takeaways
- February 2026 saw BYD’s NEV sales plunge 41.1% compared to the previous year, representing the most severe contraction since February 2020.
- The automaker has now experienced six months in a row of declining sales figures.
- NEV manufacturing output and sales volumes both contracted approximately 38% versus February 2025.
- The passenger vehicle segment experienced the most significant impact.
- International shipments reached 100,600 NEVs, while battery manufacturing capacity maintained strength.
The Chinese electric vehicle manufacturer BYD has reported its most dramatic monthly sales contraction in six years, with February figures showing a 41.1% year-over-year decrease. This alarming trend extends the company’s sales downturn to half a year.
BYD Company Limited, BYDDY
The magnitude of this decline hasn’t been witnessed since February 2020, during the initial economic disruption caused by the coronavirus pandemic.
According to a regulatory disclosure published over the weekend, both manufacturing and sales of new energy vehicles contracted by roughly 38% when compared to the same period in 2025.
The passenger vehicle category bore the brunt of the downturn, although BYD opted not to provide granular segment-level data in its official filing.
These disappointing results emerge despite the company’s commanding presence in the worldwide electric vehicle sector and its aggressive expansion into foreign territories.
International Sales Provide Limited Relief
In terms of overseas distribution, BYD delivered 100,600 NEVs internationally during February, a metric the manufacturer identified as a relative positive amid otherwise challenging circumstances.
Battery manufacturing operations remained resilient. BYD emphasized its installed capacity for NEV power systems and energy storage batteries as indicators of sustained operational scale, despite the contraction in vehicle unit sales.
The organization seems to be relying increasingly on its battery division and international operations to counterbalance weaker performance in its home market.
It’s important to recognize that February traditionally represents a slower sales period for China’s automotive industry, primarily due to Lunar New Year celebrations that reduce operational days and showroom activity.
While this seasonal pattern occurs annually, the magnitude of the current downturn remains striking even when factoring in these calendar-related considerations.
Financial Performance Indicators
BYD’s year-to-date stock performance reflects a modest decline of -0.42% at the time of the regulatory submission, with the company maintaining a market capitalization of HK$890 billion.
Daily trading activity averages approximately 21.5 million shares.
Technical analysis indicators currently suggest a Buy rating for the equity.
The latest analyst coverage for HK:1211 also recommends a Buy position, establishing a target price of HK$130.00.
The extended six-month pattern of declining monthly sales volumes prompts concerns regarding short-term market demand, especially within China’s domestic market where rivalry among electric vehicle manufacturers has grown increasingly fierce.
BYD’s February 2026 regulatory submission verified that aggregate NEV production and sales both decreased by approximately 38% on an annual basis, with international shipments totaling 100,600 vehicles and battery division capacity characterized as robust.
The post BYD Faces Steepest Sales Decline in Six Years During February Slump appeared first on Blockonomi.
Source: https://blockonomi.com/byd-faces-steepest-sales-decline-in-six-years-during-february-slump/
