BYD, striving to maintain its leadership in the electric vehicle sector, experienced a significant decline in sales performance during January and February 2026. Seasonally adjusted data shows that total sales volume for these two months decreased by approximately 36% compared to the same period of the previous year. The two-week break due to the Chinese New Year holiday in mid-February is also considered a contributing factor to this decline.
As overall demand showed signs of weakening in the Chinese electric vehicle market, BYD's market share began to shrink against its domestic competitors. At the same time, rival manufacturers increased their sales, significantly shifting the balance of competition. The weakening of purchasing demand due to tax cuts further reinforced the downward trend in the sector. Competitors' share is exceeding BYD's..
Several players stand out for their growth in January-February. Leapmotor sold 60.126 vehicles in these two months, registering an increase of approximately 19% year-on-year. Technology giant Xiaomi also continued its rise in the electric vehicle scene, achieving a 48% year-on-year growth with sales exceeding 59.000 units. Significant increases were also reported for Nio and Zeekr; Nio showed a 77% year-on-year increase, while Zeekr saw an increase of approximately 84%. In contrast, Xpeng experienced a 42% decrease and Li Auto a 4% decrease.
BYD's strategy is shifting towards the global market.Faced with increasing competition, BYD is not only focusing on the Chinese domestic market; it is pursuing a path of global growth. By February 2026, BYD's overseas sales were projected to surpass domestic sales. Export figures throughout 2025 reached a historic milestone, exceeding one million units. Analysts note that this global expansion by BYD represents a significant advantage for competitors who remain reliant on the domestic market.
The company is focusing on new technologies to strengthen its competitiveness. In addition to the next-generation battery and fast-charging solutions expected to be launched very soon, it previously boosted demand by offering its God's Eye driving assistance system for free. A similar approach is anticipated this year as well.
