BYD Sales Slide in January Amid Rising EV Competition

China’s largest automaker, BYD Company Limited BYDDY, started 2026 on a weak note, reporting a significant drop in January sales. The company sold 210,051 new-energy vehicles (NEVs), including battery-electric and plug-in hybrids, in the first month of 2026, marking a decline of more than 30.1% from January 2025. The figure comprised 205,518 passenger vehicles and 4,533 commercial vehicles, extending BYD’s year-on-year sales decline to a fifth consecutive month.

The continued slide highlights growing challenges for the company as competition in China’s electric vehicle (EV) market intensifies. The January figure includes both passenger and commercial vehicles, such as trucks and buses, highlighting broad-based weakness across key segments.

Exports offered some support amid the slowdown. Nearly half of BYD’s sales came from exports, with about 100,482 vehicles shipped overseas, showing that international markets remain an important part of its sales mix even as global volumes soften. At the same time, the company produced 29.1% fewer vehicles than a year earlier, extending a production decline that has persisted since July 2025. In January, BYD also cut its 2026 export target from 1.5 million vehicles to 1.3 million, per CarExpert.

Passenger vehicles were the main drag on performance. BYD’s passenger car sales fell sharply both year over year and sequentially, reflecting weaker consumer demand following the year-end buying season and a broader slowdown in the domestic market. In contrast, BYD’s commercial vehicle segment showed modest growth.

The slowdown was not limited to China alone. BYD’s global volume also declined, extending a broader weakening trend seen in recent months. While the company remains one of the world’s leading EV manufacturers, maintaining rapid growth has become more challenging amid changing market conditions and rising competition.

Despite the continued downturn, BYD remains a major force in the global electric vehicle industry. However, the fifth straight month of declining sales highlights the challenges ahead as the company works to stabilize volumes and adapt to evolving market dynamics.

Byd Co., Ltd. Price and Consensus

Byd Co., Ltd. price-consensus-chart | Byd Co., Ltd. Quote

BYDDY’s Zacks Rank & Key Picks

BYDDY currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the auto space are Ford Motor F, REV Group REVG and PHINIA Inc. PHIN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimate for 2025 and 2026 has improved 7 cents and 11 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for REVG’s fiscal 2026 sales and earnings implies year-over-year growth of 8.1% and 37.8%, respectively. EPS estimate for fiscal 2026 and 2027 has improved 20 cents and 26 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. The EPS estimate for 2025 has improved 47 cents and 66 cents, respectively, in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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