BYDDY reported electric passenger car sales in China for January 2026 at their lowest level since early 2024, with new energy vehicle (NEV) deliveries falling 30.5% year-on-year. This represents the fifth consecutive monthly decline in sales volumes. Industry data show that overall NEV sales in China eked out just a 2.6% increase in December, signaling broader market weakness. Analysts point to the reinstatement of a 5% purchase tax on new energy vehicles as of January 1—up from a full exemption—to explain much of the pullback in consumer demand. Competition has intensified: Xiaomi’s EV arm delivered 39,000 units in January (up 70% YoY), NIO nearly doubled its deliveries, while peers like XPeng and Li Auto saw significant declines, further eroding BYDDY’s domestic market share despite its scale advantages.

Despite softer sales at home, BYDDY’s international operations are gaining traction. In Germany—the largest auto market in Europe—BYDDY’s January sales surged more than 1,000% compared with the same month last year, vastly outpacing Tesla’s sub-2% growth in the region. The company is also advancing localization efforts: its Brazilian factory aims to source 50% of vehicle components locally by the end of 2026, which could unlock import-duty savings and bolster competitiveness against established players. Management has highlighted planned upgrades to charging infrastructure, energy‐storage solutions and intelligent driving features as key drivers of future export growth, offering investors a potential buffer against ongoing domestic headwinds.