After a record 2025, BYD faces its first major sales correction in 2026
The handbrake is pulled for the giant BYD: Drastic decrease of 41% in February 2026
SHENZHEN – After a 2025 in which it “ate coal” and dethroned Tesla from the throne of electric vehicles, Chinese giant BYD seems to have encountered its first serious obstacle of the new year. The latest official figures show a global sales drop of 41% in February 2026, raising questions about whether the brand’s meteoric rise has reached a ceiling or is just a strategic pause.
The numbers that give investors chills
February ended with a total of 190,190 units sold globally. Although exports shone with a 50% increase, this international success failed to compensate for the "hemorrhage" in the domestic market. In China, the manufacturer's home country, sales collapsed by a staggering 65%.
This decline also dragged down the cumulative balance sheet for the first two months of the year, which shows a 36% decrease compared to the same period in 2025. For a company that sold 10 times more last year than in 2020 (reaching the 4.6 million vehicle milestone), the contrast is brutal.
Quick comparison: February 2025 vs. February 2026
| Metric | February 2025 | February 2026 | Change / Evolution |
| Global Sales | ~322,000 | 190,190 | -41% |
| China Market | Majority share | Sharp decline | -65% |
| Exports | Steady growth | Over 100,000 | +50% |
Why did the market freeze? The "Fire Horse" factor
Analysts, however, are in no hurry to declare “the end of the BYD era.” There are three main reasons that explain this setback:
- Chinese New Year (February 17 - March 3): In 2026, the holiday fell later, paralyzing production and showrooms for almost half the month. The arrival of the Year of the Fire Horse was marked by extended holidays rather than car purchases.
- Subsidy Withdrawal: At the end of 2025, the Chinese government significantly reduced tax incentives for electric vehicles, prompting many customers to rush their purchases in December, leaving January and February "empty".
- Fierce competition: Local rivals, such as Geely, have taken advantage of this moment of vulnerability to launch aggressive offers, managing, according to preliminary data, to surpass BYD in domestic market share during February.
The export paradox: Europe and Latin America save the day
While China is quiet, the rest of the world seems to be only now discovering the appetite for BYD models. Exports have surpassed 100.000 units in a single month.
In Europe, BYD reported a growth of over 160% in registrations in some key markets, benefiting from strategic stocking and an expanded dealer network. While Tesla continues to face a decline in demand in the EU for the 13th consecutive month, BYD appears to be quickly filling the gaps left by the Americans.
What's next? "Blade 2.0" on the horizon
The February setback could be just a "pothole" on the road to a new record. BYD is preparing for the launch of the new generation of Blade 2.0 batteries and the DM 6.0 hybrid system in March, which promise ranges of over 2,000 km.
“February was a month of sacrifice in the domestic market, but the explosion in exports shows us where the real war will be fought in 2026: outside China’s borders,” says an auto analyst at JPMorgan.
It remains to be seen whether the "Fire Horse" will bring the promised good luck to Asian culture or whether BYD will have to accelerate even harder to keep its crown in the face of a competition that has no intention of losing ground.