The pressure’s on: As BYD declines in China, Australia is expected to move the metal
BYD has suffered a bruising start to 2026 at home in China following news it delivered 400,241 vehicles in January and February – a humbling 36 per cent drop on its 2025 domestic sales performance.
The domestic result is in stark contrast to BYD’s export performance including Australia, with it shipping 201,082 plug-in hybrids and EVs over the first two months of 2026.
And the pressure is on to keep lifting that export performance, with BYD targeting 1.3 million overseas sales in 2026 versus 1.04 million in 2025.
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Of BYD’s Chinese total, 190,190 cars were sold in February, an even more eye-watering 41 per cent decline on the same month last year, although analysts say Lunar New Year celebrations impacted its performance.
Over the same two months, rival Geely managed to overtake BYD, selling 76,000 more vehicles locally.
Other reasons for the volume drop-off include a reduction in tax breaks, buyers waiting for new BYD models to arrive and rumours that new government-backed trade-in schemes are on the way.
Partially offsetting the Chinese sales slump were strong export sales
While BYD suffered a sales hiccup, rivals like Leapmotor saw volumes climb by 19 per cent to 60,126 cars, while Xiaomi jumped 48 per cent to 59,000 units.
While Geely sold 76,000 more vehicles than BYD domestically, its exports of 181,891 vehicles still trail BYD, although Geely-owned Zeekr jumped by an incredible 84 per cent.
In Australia, led by the Shark 6, Sealion 7 and Sealion 6, BYD sales rose a dramatic 156.2 per cent to 52,415 in 2025, locking it into eighth in overall sales results.
That result meant it also claimed sales leadership for BYD in the Asia Pacific region.
So far in 2026, its sales are up a mammoth 161 per cent year-on-year and it is sixth in sales.
A top five overall sales result with potential to climb as high as top three is judged as feasible internally as soon as this year.
Asked recently if the home market slump meant BYD was piling more pressure on its export markets, BYD Australia COO Stephen Collins deflected.
“I think everyone, any auto executive in Australia has pressure,” he said. “I don’t think it’s unreasonable. I think the expectation is that we’ll keep improving.
“But, you know, I’m comfortable with that. Because we started as an OEM seven months ago. So, no, I don’t think there’s any unreasonable expectation.
“But there’s an expectation to improve. And every single day, every single person at BYD and our dealerships comes in to improve.
“How many hours of sleep do you get a night? I sleep well. You should at the moment on this growth, right?
“To give some context to our market. BYD globally puts a lot of spotlight on this market because it’s a very competitive, mature market.
“And it’s almost like a proof point. If BYD can be successful in Australia, it basically sets a benchmark for how BYD can succeed in other markets.”
BYD has kicked off 2026 with the launch of the Sealion 5 and its first seven-seat SUV, the Sealion 8.
Expansion of the Shark 6 line-up and the Seal 6 sedan and wagon are also due soon.
With Bruce Newton
