BYD, the Chinese electric vehicle (EV) giant, has reported a significant drop in sales for January 2026, marking the fifth consecutive month of decline. According to data released on February 1, 2026, the company sold 210,051 new energy vehicles in January. This represents a 30.11% decrease compared to January of the previous year. The figures also reveal a 50.04% drop from December 2025, highlighting a substantial sequential decline.
Of the total sales, 205,518 units were passenger vehicles, comprising 83,249 battery-electric models and 122,269 plug-in hybrids. The remaining units were commercial vehicles, totaling 4,533. While domestic sales experienced a downturn, BYD's exports remained strong, with 100,482 vehicles shipped overseas in January. This export volume accounts for nearly half of the company's total monthly sales, demonstrating a significant gap between domestic and international delivery volumes. BYD is aiming for 1.3 million overseas vehicle sales in 2026, which would represent approximately 24% growth.
The January sales slump reflects broader trends within China's automotive industry. Several automakers experienced month-on-month fluctuations in January, influenced by production schedules, logistics, and consumer behavior changes related to the Lunar New Year period. The Chinese EV market is also experiencing intensified competition, with manufacturers adjusting prices and product positioning. Furthermore, the expiration of vehicle trade-in subsidies in numerous Chinese cities at the end of the previous year contributed to a slowdown in industry activity starting in November. Although China has prolonged these trade-in subsidies with adjusted details, the market remains in a transitional phase. The end of EV subsidies in December also led to a rush to purchase vehicles beforehand, leaving January sales lower.
The weak sales figures released by BYD and other Chinese EV manufacturers have impacted stock prices. BYD's shares fell by 7.8%, while Li Auto, NIO, and Xpeng experienced declines of 3.6%, 6.0%, and 9.0%, respectively. Great Wall Motor's shares also retreated by 4.75%. Despite the January downturn, BYD maintained its leading position in the market. Other manufacturers also reported weaker deliveries. XPeng delivered 20,011 vehicles, a 34% year-on-year decrease, while Li Auto's deliveries fell by 8% to 27,668 vehicles. NIO, however, saw a near doubling of deliveries to 27,182 vehicles compared to the previous year, although this was a 44% decrease compared to December. Great Wall Motor's new energy vehicle sales also decreased by 19% to 18,029 units.
Analysts anticipate a challenging year for China's automotive industry in 2026. Factors such as a higher effective EV purchase tax and tighter policies are expected to drive a downtrend for EV manufacturers. However, automakers are likely to implement measures to navigate these challenges, including purchase-tax subsidies for specific models and trade-in incentives. Despite the current headwinds, analysts project total sales for 2026 to surpass the previous year, estimating over 5 million units sold, compared to 4.6 million in 2025.