<div id="readability-page-1"><p>Chinese automaker BYD (HK:1211) (BYDDF) disappointed investors yet again by reporting a 30.1% year-over-year decline and a 50% month-over-month fall in its new energy vehicle (NEV) sales in January 2026 to 210,051 units. This marked the fifth consecutive month of decline for the NEV maker, which makes both passenger and commercial vehicles. BYD's Hong Kong-listed shares fell 7% on Monday, while stocks of other Chinese EV makers Nio (HK:9866) (NIO), XPeng (HK:9868) (XPEV), and Li Auto (HK:2015) (LI) also declined amid concerns of a slowdown in the EV industry.</p><h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <h2><strong>Here's Why BYD's Sales Are Under Pressure</strong></h2> <p>BYD is under pressure due to intense competition in the Chinese EV market, the impact of price wars on margins, less supportive policies, and macro uncertainties. Notably, a revised 2026 subsidy policy is affecting affordable car brands, as it is based on new vehicle prices rather than a fixed subsidy under the previous scheme. Additionally, NEV buyers in China will face a 5% purchase tax in 2026.</p> <p>In January 2026, BYD's passenger battery electric vehicles (BEVs) declined about 34% year-over-year and more than 56% month-over-month to 83,249 units. Moreover, the company's passenger plug-in hybrid electric vehicle (PHEV) sales fell 28.5% year-over-year to 122,269 units, marking the 10<sup>th </sup>straight month of decline. Passenger PHEV sales in January 2026 were down 45.4% from December 2025.</p> <p>BYD has been relying on growth opportunities in international markets to offset the weakness in China's NEV space. In January 2026, BYD's NEV exports rose 51.5% year-over-year to 100,482 units. However, January exports were down 24.6% on a sequential basis.</p> <p>Also, BYD ‌has been facing intense rivalry from players like Geely (HK:0175) (GELYF) and Leapmotor (HK:9863) in the sub-$25,000 segment, thanks to their technologically advanced features. The company is trying to revive demand through the launch of enhanced models. BYD topped U.S. rival Tesla (TSLA) as the world's biggest EV seller in 2025. The company reported a 28% rise in sales of its battery-powered vehicles to 2.26 million units last year. In comparison, Tesla's EV deliveries declined 8% to 1.64 million units in 2025. However, BYD's overall sales increased by 7.7% to 4.6 million units in 2025, reflecting a notable slowdown from the 41% surge in 2024.</p> <h2><strong>Is BYD Stock a Buy, Sell, or Hold?</strong></h2> <p>Despite ongoing pressures, Wall Street has a Strong Buy consensus rating on BYD stock based on nine unanimous Buys. The average BYDDF stock price target of $17.68 indicates about 42% upside potential from current levels.</p></div>

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<p>BYD's stock fell 7% as the company reported a 30.1% year-over-year decline in new energy vehicle sales for January 2026, marking the fifth consecutive month of decline. Factors contributing to the slump include intense competition, price wars, and new subsidy policies affecting affordable car brands. Despite a 51.5% increase in NEV exports year-over-year, overall sales growth has slowed significantly. Wall Street maintains a Strong Buy consensus on BYD stock, with a target price suggesting a 42% upside potential.</p>

- BYD reported a significant 30.1% year-over-year drop in NEV sales for January 2026, marking the fifth consecutive month of decline.  
- The decline is attributed to heightened competition, unfavorable pricing policies, and a 5% purchase tax imposed on NEV buyers, which has impacted sales of both BEVs and PHEVs.  
- Despite challenges in the domestic market, BYD's NEV exports increased by 51.5% year-over-year, and analysts maintain a Strong Buy consensus rating with a target price suggesting potential growth.

BYD Stock Tanks as Deliveries Fall for Fifth Straight Month, What's Causing the Slump?