BYD Auto reported a 41% drop in global sales to 190,190 units in February 2026, following strong growth in the same month last year, as the Chinese automaker continued to face plunging demand in its home market after the government withdrew some of its new energy vehicle (NEV) sales incentives at the end of last year. Competition from other domestic automakers has also intensified significantly in the last year.

February was the sixth consecutive month of decline for the Shenzhen-based automaker. While there were fewer working days in February this year compared with last year due to the timing of the prolonged Chinese Lunar New Year holidays, BYD’s global sales were also down by 30% year-on-year to 210,051 units in January. In the first two months of 2026, the company’s global sales dropped by 36% to 400,241 units.

BYD’s domestic sales plunged by 65% year-on-year to 89,590 vehicles in February, following a 53% drop to 109,569 units in January. Exports rose by over 50% to 100,600 units last month, however, with the company stepping up its global expansion with an increased focus on Latin America and Europe to try to offset weak domestic sales.

In the first two months of 2026, domestic sales fell by 58% to 199,159 units, while exports surged by over 50% to 201,082 units.

BYD has joined a growing number of Chinese automakers offering ‘ultra-long-term’ auto financing programmes, with repayment terms of up to eight years, to help attract more domestic customers.