BYD Sales Plunge 41% in January Amid Market Share Battle

Intelligence Briefing: China's leading electric vehicle manufacturer BYD experienced a significant sales decline in January 2026, with total sales falling 41% year-over-year to 190,190 units, according to industry data. The sharp decline marks the first time in years that BYD's monthly sales have fallen below 200,000 units, triggering widespread discussion in Chinese automotive circles. The decline coincides with the Lunar New Year holiday period, which typically reduces working days, but industry analysts note that BYD's decline exceeds competitors significantly. Geely Automobile has now overtaken BYD in monthly sales, achieving over 200,000 units for two consecutive months. However, BYD's overseas sales reached 100,151 units in February, representing over 40% growth and accounting for more than 50% of total sales—marking the first time overseas sales exceeded domestic sales. This milestone positions BYD increasingly as a multinational automaker rather than a domestic Chinese company. Industry sources indicate BYD is preparing a major technology announcement scheduled for March 5, including plans to equip pure electric vehicles with 240kW motors as standard across the lineup, representing a significant upgrade from current configurations. The company is also reportedly developing second-generation battery systems and 5C fast-charging technology planned for models priced under 100,000 yuan. The sales decline and strategic pivot suggest BYD is deliberately exiting the aggressive price war that has characterized the Chinese EV market, opting instead to focus on technology leadership and margin improvement.