NEW YORK, January 1, 2026, 08:33 ET — Market closed
- BYD said 2025 vehicle sales rose 7.73% to 4.6 million units; December sales fell 18.3% year-on-year.
- The Shenzhen-listed stock last closed down 2.04% at 97.72 yuan.
- Investors are watching China’s 2026 trade-in subsidy rules and whether BYD’s overseas push can offset pressure at home.
BYD Co said in a stock filing on Thursday that 2025 vehicle sales rose 7.73% to 4.6 million units, its weakest growth in five years as competition in China’s electric-vehicle market intensified. The filing showed December sales fell 18.3% from a year earlier and the Shenzhen-listed stock last closed down 2.04% at 97.72 yuan. BYD has cut prices on more than 20 models and rolled out new tech features, but rivals including Geely and Leapmotor have kept pressure on the market leader.
The update is an early read on 2026 momentum in China’s auto market after a year of heavy discounting that squeezed profitability across the sector. Investors are trying to gauge whether BYD can defend volumes without sacrificing margins as growth cools and competition shifts to software features and charging speed.
Policy is also in play. China renewed its 2026 auto trade-in subsidy program, calculating support as a proportion of the new vehicle’s price with a cap of 20,000 yuan, and extending eligibility cut-off dates for older vehicles being scrapped. For buyers replacing an older car with an electric vehicle, the subsidy can run up to 12% of the new car’s price, capped at 20,000 yuan, under a circular released by agencies including the country’s economic planner and finance ministry.
China’s “new energy vehicle” category — battery-electric cars and plug-in hybrids — has become the main battlefield for pricing and product cycles. Geely and Leapmotor have stepped up competition at the lower end, where BYD’s high-volume models compete, keeping the bar high for new launches and incentives.
A brighter spot has been abroad. Deliveries outside China hit about 1.05 million units in 2025, and the company likely surpassed Tesla to become the world’s biggest EV maker, according to a statement cited by Bloomberg. Analysts’ estimates compiled by Bloomberg see BYD’s total sales rising to about 5.3 million units in 2026, and Deutsche Bank has pointed to new product launches and a technology platform as potential support for competitiveness.
“International deliveries will make a greater contribution in the years to come,” Li Yunfei, BYD’s general manager of branding and public relations, said, according to the South China Morning Post.
With Chinese markets shut on Thursday for the New Year’s Day holiday, BYD’s next price reaction in Shenzhen will come when trading resumes. 1
U.S. markets are also closed on Thursday for New Year’s Day, according to the New York Stock Exchange holiday calendar. 2
Before the next session, traders will be looking ahead to BYD’s next results update, with Wall Street Journal data listing the company’s next earnings date around March 31. 3
Near-term, investors are watching for signs that domestic demand stabilises after subsidy tweaks, and whether BYD can keep pricing disciplined as rivals crowd the mass-market segment. Monthly sales disclosures and any commentary on overseas growth will be closely parsed for evidence that exports can keep carrying the load.
