Chinese automaker BYD Auto reported a 30% year-on-year plunge in global sales to 210,051 units in January 2026, compared with strong year-earlier sales — when deliveries surged by 49% to 300,538 units.

This was the fifth consecutive month of decline for the automaker, China’s largest last year with 4,602,436 units, and is an indication of tough market conditions ahead — both for its domestic market and overseas. Compared with the 420,398 units sold in December 2025, last month’s deliveries were down by 50%.

News of the sharp sales decline took many investors by surprise, sending BYD’s share price in Hong Kong plunging by 18% on Monday. Concern is growing that China’s domestic market is headed for a prolonged slowdown after the Chinese government reduced incentives for new energy vehicles (NEVs) at the end of 2025, while last year’s strong surge in exports is unlikely to be maintained after incentives were also withdrawn in a number of key overseas markets.

In January, BYD’s global sales of passenger battery electric vehicles (BEVs) fell by almost 34% year-on-year to 83,249 units, and by 56% month-on-month. Sales of passenger plug-in hybrid electric vehicles (PHEVs) fell for the tenth consecutive month, by almost 29% year-on-year to 122,269 units and by 45% month-on-month.

Commercial NEVs increased by 11% year-on-year to 4,533 units in January, but were down by 19% from December.

Overall exports fell by 51% year-on-year to 100,482 units last month, and were down by almost 25% compared with shipments in December.