BYD Sales Dip Amid Subsidy Cuts, Exports Remain Key

China’s EV giant BYD is facing a challenging start to 2026, with sales dropping for the fifth consecutive month and the company lowering its export target after missing last year’s goal by roughly one million vehicles.

In January, BYD sold 210,051 cars worldwide, a 30% drop compared to January 2025, according to its stock exchange filing. Exports made up nearly half of that total, at 100,482 vehicles, highlighting the automaker’s increasing reliance on overseas markets. 

Production also fell by nearly 30% year-on-year, extending a decline that began in mid-2025.

The downturn comes despite BYD claiming the title of the world’s top EV maker in 2025, surpassing Tesla with 4.6 million cars delivered globally, including 2.26 million electric vehicles. 

Tesla, meanwhile, has struggled with falling sales, model changes, and controversy surrounding CEO Elon Musk, leading to its second consecutive year of declining deliveries.

Experts say BYD’s January slowdown was partly expected. A late-year surge in buyers rushing to benefit from China’s EV purchase subsidies, which were rolled back at the end of December, created a strong finish to 2025, leaving early 2026 sales softer. 

The Lunar New Year break also typically causes fluctuations in monthly figures.

Still, the Shenzhen-based company is betting on growth abroad. BYD has revised its 2026 export target down from 1.5 million to 1.3 million vehicles, but analysts expect overseas deliveries to expand nearly 25%, making international sales a crucial part of its strategy. 

Competition at home, however, remains intense, with rivals like Geely and Leapmotor gaining traction, while government efforts to curb aggressive price cuts are shaping market demand.

To navigate these challenges, BYD plans to focus on new technologies, product launches, and its premium sub-brands Denza and Yangwang to boost the average selling price and appeal to higher-end buyers. 

Analysts remain optimistic that BYD could rebound to over 5 million units globally in 2026, even as domestic sales slow and subsidies decline.