Automakers have been releasing their sales figures for the first half of the year. In the new energy passenger vehicle segment, which garners significant market attention, Byd Company Limited (BYD) sold a cumulative 1.7774 million units, representing a year-on-year decline of 15.9%, positioning it at the bottom among listed automakers that have disclosed their data so far.
Examining sales by region, BYD's domestic sales plummeted by 40% due to intensifying competition, marking the steepest drop in years. Concurrently, its export volume grew by 70%, yet this pace still lagged behind leading domestic automakers like Geely and Chery.
More concerning is that the prolonged weakness in BYD's vehicle sales is starting to trigger a ripple effect. In the first four months of this year, among the top ten global power battery installation volume leaders, BYD was the sole domestic enterprise to experience a simultaneous decline in both installation volume and market share. Its 2.3 percentage point drop in market share also ranked last among all listed companies, indicating that poor sales performance has now impacted its power battery business.
The real test for BYD may only begin once the growth rate of its exports moderates in the future.
Domestic Sales Plunge and Overseas Growth Lags
In the first half of this year, BYD's cumulative sales of new energy passenger vehicles fell by 15.9% year-on-year to 1.7774 million units, placing it last among A-share and H-share listed automakers that have released their results.
Exports were one of the few bright spots for BYD during this period. In June, it exported 175,300 new energy vehicles, a surge of approximately 95% year-on-year, with overseas sales accounting for 43% of the total. For the first half, cumulative overseas sales reached about 789,400 units. In April alone, overseas sales hit 134,500 vehicles, a year-on-year increase of 70.9%.
However, this 70.9% growth rate is not particularly outstanding compared to other leading domestic brands. Data shows that Chery Group exported a cumulative 943,800 vehicles in the first half, a 72% year-on-year increase, while Geely Auto exported 474,200 vehicles, soaring 157% year-on-year. In terms of export growth rate, BYD has fallen behind both Chery and Geely.
In fact, the electric vehicle export lane is rapidly becoming crowded. From January to May 2026, China exported 1.833 million new energy vehicles, a sharp increase of 110% year-on-year. Besides Geely and Chery, other automakers like SAIC's MG brand and Leapmotor are also accelerating their overseas expansion. Against this backdrop of accelerated deployment by various automakers, the incremental space in overseas markets is being quickly eroded.
It is noteworthy that despite the 70.9% surge in exports, BYD's overall passenger vehicle sales in the first half still declined by nearly 16%. Due to intensified competition in the domestic market, BYD's domestic sales in the first half plummeted by approximately 40% year-on-year, the largest decline for the period in many years.
Sales Weakness Triggers Chain Reaction in Battery Business
What concerns the market even more is that the contraction in BYD's vehicle sales is propagating upstream along the industrial chain.
Data released by SNE Research in June for global power battery installation volume from January to April 2026 showed that BYD's market share was 14.2%, down 2.3 percentage points year-on-year, with installation volume at 50 GWh, down 2.4% year-on-year. This made it the sole domestic company among the top ten to experience a simultaneous decline in both installation volume and market share. Furthermore, its 2.3 percentage point drop in market share was also the largest among all listed companies.
Statistics from the Power Battery Application Branch Research Center show that China's power battery installation volume in May 2026 totaled 72.4 GWh, up 26.1% year-on-year. Within this, the installation volume for FinDreams Battery (BYD's battery unit) was only 11.9 GWh in May, a decrease of 0.8 GWh year-on-year. Its market share plummeted from 22.0% in the same period last year to 16.4%, a drop of 5.6 percentage points, making it the only company among the top ten to see declines in both installation and share, and widening the gap with CATL.
In the first quarter of 2026, domestic sales of B-segment new energy vehicles plunged to 800,000 units from 1.207 million in the same period last year. Key models for FinDreams Battery, such as the Song PLUS, Qin PLUS, and Seagull, fall within this segment. The shrinking market size directly impacted installation volume. As most of FinDreams Battery's products are supplied to BYD, the decline in vehicle sales has been transmitted to the battery business with almost no buffer.
Facing the ongoing contraction in the domestic market, BYD Chairman Wang Chuanfu has recently been frequently visiting various provinces. However, as multiple challenges converge—including the gradual thinning of overseas market dividends, pressure on the battery business, and difficulties in breaking through in the domestic high-end market—the real test for BYD in the second half of the year may have only just begun.
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