BYD’s February vehicle sales see steepest drop since covid period

Chinese electric vehicle manufacturer BYD reported its steepest monthly sales decline in six years in February, citing intense competition in the domestic market. According to a stock exchange filing on Sunday, global sales fell 41.1% year-on-year, marking the sixth straight month of decline and the sharpest drop since February 2020, when the COVID-19 pandemic disrupted economic activity.

For the January–February period, BYD’s global sales were down 35.8% compared with the same period last year, the largest two-month contraction since 2020. While seasonal fluctuations linked to the Lunar New Year can affect early-year sales data, - particularly this year, as China extended the holiday to nine days - the company’s downturn has extended beyond seasonal factors.

Domestic sales declined 65% year-on-year in February to 89,590 units, worsening from a 53.2% fall in January, when Geely overtook BYD as China’s top-selling carmaker. In contrast, overseas shipments rose to 100,600 vehicles in February, reflecting continued growth in international markets.

Amid rising competition, BYD has introduced a seven-year low-interest financing scheme, similar to a programme launched by Tesla in January. The company is also expected to unveil new technologies later this month as it faces pressure from narrowing gaps in product innovation.

Regulators in China have introduced new pricing guidelines and tightened oversight of vehicles exported as used cars, aiming to encourage competition based on value rather than price cuts. BYD has also expanded its overseas strategy to counter domestic weakness. The company, along with Geely, is among the shortlisted bidders for a Nissan-Mercedes-Benz manufacturing facility in Mexico, according to a Reuters report last month.