BYD February sales fall 41% after Lunar New Year slowdown

BYD, the Shenzhen-based maker of EVs and plug-in hybrids, said February vehicle sales fell 41% year-on-year after a record-long Lunar New Year holiday slowed production and retail activity.

The company sold 190,190 vehicles in February, including 187,782 passenger vehicles, while exports of new energy vehicles reached 100,600 units.

Sales in January and February fell 36% to 400,241 units as domestic demand cooled amid reduced purchase tax exemptions, tapering stimulus policies, cooling consumer confidence, and stiffer competition.

Bloomberg said BYD’s focus remains on balancing dealer inventory while maintaining aggressive pricing and expanding in Latin America and Europe amid weakness at home.

Investors will watch March, traditionally a high-volume month, for signs of a rebound as BYD faces pressure to introduce new models ahead of the Beijing Auto Show in late April.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

A February sales dip still leaves BYD with more control in China

February sales fell, yet BYD’s domestic market share climbed to 17.1% in 2024 from 12.5% in 2023 and passed Volkswagen, according to SNE Research 1.
As demand cools, BYD cut its annual sales target to 4.60 million units from 5.50 million units, after SNE Research linked the change to tougher rivalry among Chinese original equipment manufacturers (OEMs) in the EV market 1.
Overseas volumes are rising. In December 2025, exports to Southeast Asia hit 32,427 units while shipments to the European Union (EU)+UK+European Free Trade Association (EFTA) reached 31,048 units, two of its biggest destinations that month 2.
The slower home market adds urgency to overseas growth plans while competition in China keeps intensifying 1, 3.

BYD is building plants overseas to ease trade barriers

Strain in the domestic market is speeding up a broader manufacturing buildout abroad, taking BYD into direct competition with established automakers in their home regions.
Factories in Hungary and Turkey support production in Europe and reduce tariff exposure. One Hungary plant targets 150,000 to 200,000 cars a year, while the Turkey plant lists 150,000 cars of annual capacity 3.
This expansion draws scrutiny. The EU is probing possible unfair state aid tied to its Hungarian factory, while a Brazilian site linked to its plans faces allegations of “slavery-like” labor conditions 3.
As it shifts from a Chinese exporter into a more global automaker, BYD must manage geopolitics and reputation alongside growth 3.