by The Start of 2026 Has Been Tough for BYD
For the past three years, the Chinese automaker BYD has shown rapid growth, constantly expanding its model range and increasing sales. However, the first months of 2026 brought an unexpected decline, resulting in the company Geely becoming the main competitor in the domestic Chinese market.
According to the results of January and February 2026, BYD sold 400,241 vehicles, which is 36% less than in the same period last year. Sales for February alone amounted to 190,190 vehicles. This is 9.5% less than in January, partly explained by the Lunar New Year holidays, but also 41% less than in February 2025.
Reasons for the Decline in the Domestic Market
Experts link such a sharp decline with the reduction of state tax incentives for electric vehicle buyers, as well as with a decrease in consumer confidence. Many potential buyers are now postponing their decision, awaiting the arrival of new models on the market and greater clarity regarding government programs for scrapping old cars.
At the same time, while BYD faces difficulties at home, it continues to gain popularity in foreign markets. In February alone, the company exported 100,600 new energy vehicles, which include electric vehicles and plug-in hybrids. Combined with January, BYD has already exported 201,082 cars.
Competitors Are Advancing
While BYD is going through a difficult period, a number of other Chinese automakers are showing the opposite dynamic. In the first two months of 2026, sales of Leapmotor, a Stellantis partner, grew by 19% to 60,126 units. Xiaomi’s EV division increased sales by 48% compared to last year, reaching over 59,000 units. Zeekr showed rapid growth of 84%, and Nio’s deliveries increased by 77%.
The start of the year has been particularly successful for Geely. As of today, this company has sold approximately 76,000 more cars than BYD in the domestic Chinese market. This is the first time since 2022 that Geely has outsold BYD for at least two consecutive months. However, in foreign markets, Geely is still slightly behind, having exported 181,891 cars since the beginning of the year.
BYD’s CEO Wang Chuanfu acknowledged the growing competitive pressure back in December. He noted that competing automakers have begun to close the technological advantage that once gave BYD a clear edge, and this is now reflected in the sales figures.
The situation in China’s new energy vehicle market remains extremely dynamic and competitive. The sales decline of a leader like BYD against the backdrop of growth from other players indicates that consumers have become more demanding and technological gaps are quickly disappearing. The success of Geely and other companies shows that the battle for leadership in China, the world’s largest electric vehicle market, is entering a new phase where the stability of positions is no longer guaranteed. At the same time, exports remain a key growth driver for all major players, compensating for the volatility of domestic demand.
