economy
March 5, 2026
BYD sales plunge in first two months of 2026 as EV giant loses more ground to competitors
BYD lost ground to its domestic competitors over the first two months of 2026, as overall demand in China's electric vehicle market slowed.
TL;DR
- BYD's January-February 2026 sales volume decreased by approximately 36% year-on-year, adjusted for seasonal slowdowns.
- Competitors like Leapmotor and Xiaomi reported significant year-on-year sales increases (19% and 48%, respectively) in the same period.
- Nio and Zeekr saw substantial sales surges of 77% and 84%, respectively.
- Xpeng and Li Auto reported year-on-year declines in sales (-42% and -4%, respectively).
- Increased competition and the "involution" strategy of packing value into offerings at competitive prices are eroding BYD's market share.
- The reinstatement of the 5% purchase tax on new energy vehicles at the end of 2025 may have created a "demand vacuum" for BYD.
- BYD's exports surpassed domestic sales for the first time in February 2026.
- China's EV market is experiencing slowing demand, partly due to the 5% purchase tax, signaling a "purposeful normalization" by regulators.
- Automakers are offering creative financing schemes, such as 0% interest loans, to boost domestic demand.
- BYD is expected to launch new products, potentially featuring its new battery technology and second-generation fast charging.
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