BYD's global sales slump in 2026: BYD loses sales crown to Geely in China, but stays ahead of Chery and GWM as stuttering sales leads to increasing importance for export markets like Australia

BYD has continued its 2026 sales struggle, recording its biggest fall in global sales in six years, according to the latest financial figures as reported by Reuters. 

February sales for the brand fell by more than 41 per cent compared to this time last year, which equates to the biggest drop in sales since February 2020. 

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It compliments more 2025 success for BYD, with the brand surpassing Tesla at the top of global electric vehicles sales charts.

Part of this year's stuttering sales for BYD is due to the increasingly segmented nature of China's domestic market. 

The brand suffered a 65 per cent drop in sales compared to year-on-year data for February, following a more than 53 per cent decline in January. 

These worsening sales numbers have resulted in Geely taking BYD’s crown as the top-selling automaker in China. It is worth noting that the sales numbers reported include each brand's subsidiaries and sub-brands, with BYD's numbers including Denza, FangChengBao, and YangWang, with Geely's numbers including Lynk & Co and Zeekr. 

Another factor is the changing domestic regulatory environment, with the Chinese government clamping down on the below-cost car sales pricing war.

It is alleged BYD and other big brands in China relied on below-cost sales to boost their footprints in China, but the latest data demonstrates a levelling of the playing field has occurred.

With tough domestic conditions, export markets will continue to take on increasing importance for Chinese manufacturers such as BYD, and the brand has big ambitions in Australia.

The brand is aiming a place around the top-three in Down Under in 2026, so its sales success in Australia will come as a welcome boost. 

BYD sold 5000 cars in January, which is sixth-most of any brand and more than the next highest Chinese brand, GWM. 

There are also rumours of BYD taking other steps to push into foreign markets.

Earlier this year, there were reports BYD was going to partner with Ford to build hybrid vehicles, with Ford already using its Lithium-Ferro-Phosphate (LFP) batteries on some Chinese-built vehicles. 

BYD is also among the finalists bidding to purchase the Nissan-Mercedes-Benz manufacturing plan in Mexico, according to a January report.