BYD’s Strategic Pivot: Record Exports Counter Domestic Slowdown

BYD CNE100000296

Shares of Chinese electric vehicle (EV) manufacturer BYD have faced recent selling pressure. In early February 2026, the stock declined approximately 7% over a single week. This movement was triggered by the release of January sales figures that, at first glance, appeared disappointing. A deeper analysis, however, reveals a significant strategic realignment within the company's business model.

The automaker reported total sales of 210,051 battery-electric and hybrid vehicles for January 2026. This figure represents a 30.1% decrease compared to the same month in the previous year. BYD attributed the domestic slowdown to seasonal impacts from the Chinese New Year holiday and the expiration of government purchase subsidies, which have cooled local demand.

Beneath the headline number lies a transformative trend: nearly half of all vehicles sold were destined for international markets. BYD exported a record 100,482 units, meaning exports accounted for 48% of total sales. This marks a fundamental change for a manufacturer historically focused almost exclusively on its home market.

European Expansion Gains Significant Traction

BYD's aggressive international push is yielding substantial results, particularly across Europe. Official data from Germany's Federal Motor Transport Authority (KBA) indicates a dramatic surge in registrations. More than 2,500 new BYD vehicles were registered in Germany in January 2026—a figure that is over ten times higher than the volume recorded a year earlier. Models such as the Sealion 7 and the Seal U are resonating with European consumers.

The company has also seen its sales double year-over-year in the United Kingdom. As competitor Tesla experiences market share erosion in the region, BYD is making clear inroads. This geographical diversification is strategically important, as export margins are typically healthier than those in the fiercely competitive and price-sensitive Chinese domestic market.

Investor Focus Turns to Annual Earnings

A key question for investors is whether BYD's burgeoning international revenue can offset profit pressures at home. The market expects clarity when the company releases its full-year 2025 financial results, anticipated for March 25 or 26, 2026. Analysts will scrutinize the profitability metrics of the export division with particular interest.

In the near term, maintaining the current export momentum will be critical. The planned commencement of production at BYD's new Hungarian factory could provide additional support by mitigating tariff risks through localized manufacturing. Upcoming sales data for February will help determine if January's domestic weakness was a temporary seasonal dip or the start of a more prolonged downturn in BYD's core Chinese market.

@ boerse-global.de | CNE100000296 BYD’S