China’s largest new energy vehicle (NEV) manufacturer, BYD, reported a sharp year-on-year sales decline in February 2026, reflecting seasonal disruption and easing policy support in its home market.
BYD delivered 190,190 NEVs in February, down 41.09% year-on-year, marking the company’s sixth consecutive month of declining sales.
The drop was partly influenced by the timing of the 2026 Chinese New Year holiday, which ran from February 15 to 23. In contrast, last year’s holiday largely fell in January, affecting production schedules and delivery volumes differently.
Month-over-month, total NEV sales also slipped compared to January, highlighting continued pressure in the domestic market.
Passenger vehicles accounted for the bulk of February deliveries, with 187,782 units sold, down 40.99% year-on-year and 8.63% lower than January.
Breaking that down:
– Battery Electric Vehicles (BEVs):
79,539 units
-36.32% YoY
-4.46% MoM
– Plug-in Hybrid Electric Vehicles (PHEVs):
108,243 units
-44.01% YoY
-11.47% MoM
The sharper decline in PHEV sales suggests softening demand in a segment that had previously driven strong growth for BYD, particularly as incentives begin to taper and competition intensifies across China’s EV market.
BYD’s commercial NEV segment delivered 2,408 units in February, down 47.80% year-on-year and 46.88% month-on-month.
While this segment represents a smaller share of total volume, the near 50% contraction underscores broader market headwinds impacting both passenger and commercial electric vehicles.
Despite domestic challenges, international sales remain a key growth engine.
BYD exported 100,600 NEVs in February, marking the fourth consecutive month that exports exceeded the 100,000-unit milestone. That figure represents a 50.09% year-on-year increase, reinforcing the company’s aggressive global expansion strategy.
As competition intensifies in China and local subsidies normalize, BYD’s overseas momentum — particularly in Europe, Southeast Asia, and Latin America — is becoming increasingly critical to balancing domestic volatility.
Under pressure from a narrowing technology gap, BYD is expected to roll out major tech innovations later this month.
