BYD’s Global Ambitions Shine as Domestic Sales Cool

BYD CNE100000296

The new year opened with a mixed performance for Chinese electric vehicle giant BYD. While overall sales of its New Energy Vehicles (NEVs) contracted significantly in January, a surge in overseas deliveries provided a notable counterbalance, highlighting the company's strategic pivot toward international expansion.

BYD reported the sale of 210,051 NEVs in January, marking a substantial year-over-year decline of 30.11%. This result represents the fifth consecutive month of falling annual comparisons and the second month in a row of sequential monthly decreases.

Analysts point to shifting government incentives in China as a primary driver behind the pullback. The recent adjustment of purchase tax benefits for NEVs and the expiration of specific vehicle trade-in subsidies in several major cities spurred a wave of buying at the end of 2025, creating a challenging comparison for January and leading to a predictable market cooldown.

Overseas Growth Emerges as Strategic Pillar

In stark contrast to the domestic weakness, BYD's international business demonstrated remarkable strength. Exports for the month jumped to 100,482 units, a robust increase of 51.47% compared to January of the previous year.

This export momentum is central to BYD's forward-looking strategy. On January 24, the automaker outlined an ambitious target to sell 1.3 million vehicles in overseas markets during 2026. This figure would constitute an approximate 24% increase over its projected international deliveries for 2025.

To support this aggressive growth plan, BYD is rapidly building manufacturing capacity outside China. A key development came on January 27, when the company finalized a partnership agreement with Kim Long Motor to construct an electric vehicle battery plant in Vietnam. This project joins a growing list of new or expanding facilities in international hubs, including Thailand, Brazil, and Hungary.

Advancing Technology and Product Portfolio

Beyond geographic expansion, BYD continues to push innovation in its core technology. The company has commenced operations of a new 30 GWh production line for sodium-ion batteries, exploring alternatives to traditional lithium-based cells that could offer future cost advantages.

On the product front, BYD is preparing to launch new flagship models in the first quarter of 2026. Vehicles such as the Seal 08 and Sealion 08 are slated for introduction, representing a focused effort to capture more market share in the competitive premium vehicle segment.

@ boerse-global.de | CNE100000296 BYD’S