Chinese carmaker BYD’s shares slump on weakening sales

HONG KONG: Shares of BYD Co Ltd sank to their lowest level in at least a year on Monday after the electric vehicle (EV) maker reported a 30% drop in its car sales in January, the biggest in nearly two years.

BYD’s Hong Kong-listed shares dropped 7.8% to HK$90.10, the lowest since February 3, 2025, and were poised for their worst daily performance in May 26, 2025.

In Shenzhen, BYD’s mainland-listed shares fell as much as 4.3% to 86.97 yuan, their lowest point since September 2024.

BYD has been grappling with growing competition and a weakening of its technological lead at home, leaving its 2025 sales growth at the slowest pace in five years.

Its January vehicle sales fell for the fifth consecutive month and represented BYD’s weakest January performance since 2020, when it was hit by COVID-19 disruptions.

To counter declining domestic demand, BYD has touted plans for product innovations in 2026.

In January, the automaker launched upgraded new versions of a number of plug-in hybrid models with long-range batteries. Sales of plug-in hybrid cars, which made up more than half of BYD’s total car sales, still fell 28.5% in January, extending a trend after they fell 7.9% in 2025. BYD is seeking faster growth overseas to offset the weakness. Sales outside China jumped 43.3% in January, accounting for 48% of its total deliveries in the month.

BYD said in January it has targeted 1.3 million vehicles in overseas shipments for this year, suggesting a 24% increase from 2025 but lower than an earlier goal of up to 1.6 million vehicles which its management told Citi in a meeting in November.