BYD's February sales dropped 41% year-over-year to 190,190 vehicles, marking the steepest decline since the pandemic began. The Chinese EV giant saw domestic sales plummet 65% while exports surged 50%, highlighting the company's struggle to offset slowing growth at home with international expansion.

The sales decline, the sixth consecutive monthly drop, reflects broader challenges in China's EV market following years of rapid expansion. Even accounting for the lunar new year holiday, combined January-February sales fell 36%, potentially worsened by an extended holiday period this year. This represents a dramatic shift from BYD's trajectory of uninterrupted growth, which saw annual sales reach 4.6 million vehicles last year, up from just 427,000 in 2020.

BYD faces mounting pressure from domestic rivals like Geely and Leapmotor, while also contending with Beijing's crackdown on below-cost pricing practices. The company is aggressively expanding its overseas footprint with factories in Uzbekistan, Thailand, Brazil, Hungary, and Turkey. HSBC analysts forecast overseas sales could reach 2 million vehicles by next year, jumping 60% in 2026 and 25% in 2027. Despite Monday's 8% share price rally following Middle East tensions, BYD's stock remains down 8.6% for 2026.