--- title: "Has BYD's Worst Moment Passed?" type: "News" locale: "en" url: "https://longbridge.com/en/news/293976108.md" description: "In the first half of 2026, BYD's total sales declined by nearly 40% year-on-year, amid intensifying competition in the domestic market. To address these challenges, BYD shifted its focus to optimizing its product lineup for the domestic market, launching multiple new models and vehicles equipped with its second-generation flash charging technology. Although order volumes for the new models were strong, production capacity constraints prevented them from entering the top 10 in monthly sales. In the second half of the year, BYD plans to launch at least nine more models, aiming to stabilize and grow its domestic market share through technological upgrades and new product releases" datetime: "2026-07-27T21:11:15.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293976108.md) - [en](https://longbridge.com/en/news/293976108.md) - [zh-HK](https://longbridge.com/zh-HK/news/293976108.md) --- # Has BYD's Worst Moment Passed? Domestic pressure and overseas expansion have been the main themes for Chinese automakers in the first half of 2026, and BYD is no exception. In the first half of this year, BYD sold a total of 789,367 vehicles overseas, with its overseas sales share rising from 21.9% to 43.6%. However, its total sales volume of 1,808,511 units represents a nearly 40% decline compared to the same period in 2025, indicating turbulence in BYD's domestic market. Consequently, BYD has shifted its focus back to the domestic market, initiating an optimization of its existing product lineup. Including the long-range versions of DM-i models such as the Qin L, Qin PLUS, Seal 05, and Song Pro launched in January, BYD introduced several new models and updated versions in the first half of the year. These ranged from the Seagull, starting at RMB 69,900, to new additions to the Denza N9/D9 lineup, priced up to RMB 469,800. However, merely filling gaps in the existing lineup has not been enough for BYD to completely stop the "bleeding" in the domestic market. Most of these new cars, such as the all-electric Seal 07, are equipped with the highly anticipated flash charging technology. Has this brought significant incremental growth? In the second half of the year, BYD plans to launch at least nine more models, including the new Han, Fang Cheng Bao Tai 9, and the Tang 8 Series. Can this wave of new models truly help BYD "stop the bleeding" in the domestic market? ## Do Flash-Charging Models Sell Better? To gauge the prospects of new models in the second half of the year, the performance of moves made in the first half offers some reference. The second-generation flash charging technology, released on March 5, was BYD's most important technological card for the first half of 2026, and indeed for the entire year. This move was executed urgently, with a promise to deploy the technology in mainstream models priced around RMB 150,000 within the year, aiming to quickly capture consumer mindshare. From the Song Ultra EV, starting at RMB 151,900, to the all-new Denza Z9GT, starting at RMB 269,800, flash charging technology is being increasingly applied to BYD's mid-to-high-end models, gradually replacing older versions. Now, more than three months later, questions remain about the effectiveness of this strategy. Although models equipped with flash charging technology have shown strong order numbers, they have rarely appeared in the top 10 monthly sales rankings over the past three to four months due to production capacity constraints. Take the Song Ultra EV, launched on March 26, as an example. The company announced that orders exceeded 60,000 units in the first month of launch. However, data on web portals showed only 5,940 orders for its first full sales month. Nearly four months after its launch, the model's highest monthly sales figure was 9,877 units in May, showing a certain gap compared to order data. Although some orders for the predecessor Song PLUS EV may have shifted to the new model during its end-of-life phase, the initial order data was impressive. Why, then, did terminal sales not reflect this? The official explanation points to issues with the second-generation Blade Battery. The second-generation Blade Battery is the hardware foundation for implementing flash charging technology. However, at the June shareholder meeting, Wang Chuanfu stated bluntly, "How many cars BYD can sell this year depends not on orders, but on battery production." Battery output has become the bottleneck constraining BYD's sales growth. Therefore, many of BYD's top 10 best-selling models in the first half of the year were those that could compete effectively without relying on flash charging. The BYD Yuan UP and Song Pro DM-i took the top two spots, with average monthly sales exceeding 13,000 and 12,000 units, respectively. BYD stated that its backlog of orders for flash-charging models across all brands exceeded 255,000 units, which has been difficult to fulfill rapidly. To address this, Wang Chuanfu revealed that the production capacity for the second-generation Blade Battery is currently ramping up by 20,000 to 30,000 units per month. Larger-scale capacity is expected to be implemented in 2027, leading to significant sales growth. Reflected in vehicle sales, the Sea Lion 05 EV and Song Ultra EV, which are equipped with the second-generation Blade Battery and flash charging technology and have completed their updates, have steadily appeared in BYD's top 10 monthly sales list since April. Based on this, Wang Chuanfu judged in June that "the worst moment has passed." CLSA also released a research report in mid-July stating that BYD has completed its bottoming-out process and is expected to regain its dominant position in the second half of the year. The production capacity for second-generation flash-charging models is expected to be gradually released in the second half, accounting for approximately 30% of total deliveries in 2026, with new models commanding an average premium of RMB 5,000 to 20,000. ## Standing Still? In the first half of this year, BYD cumulatively built 7,018 flash charging stations, covering 325 cities nationwide. For reference, Li Auto, which also pursues ultra-fast charging, had 4,114 supercharging stations as of 7:00 PM on July 27. NIO, which started building its charging network earlier, had 5,132 NIO Power charging stations. Of course, the location selection and nature of BYD's flash charging stations remain controversial, but its expansion speed still reflects BYD's desire to establish new advantages. BYD's new car lineup for the second half of the year will start from the important foundation of flash charging technology, using different strategies to push BYD upward. First is the most anticipated flagship replacement. The BYD brand will launch the flagship Han sedan and the Tang 8 Series in the second half of the year. With a length of over 5.2 meters, the new Han offers improvements over the current Han/Han L in chassis quality (front double-wishbone + rear five-link all-aluminum suspension), platform (e-Platform 4.0), energy replenishment (10%-97% charge in as fast as 9 minutes), and range (up to 1,008 km pure electric range under CLTC). As for the Tang 8 Series, another flagship SUV complementary to the business-oriented Tang, it focuses on family use. With a pure electric range exceeding 800 kilometers, the chassis is expected to feature DiSus-A dual-chamber air suspension and God's Eye B capabilities. It is also expected to match the Tang in terms of interior comfort and intelligence. The performance of the new Han and Tang 8 Series will re-anchor BYD's competitiveness in the RMB 250,000–350,000 price segment. However, in this price segment, intelligence and comfort have long been BYD's weaknesses. Another, more familiar route is BYD's focus on the mainstream mass market. Lower-priced products such as the Sea Lion 08 and the new Yuan UP are scheduled for launch in July and August. The current Yuan UP is BYD's best-selling model so far in 2026, and its enhanced competitiveness after the facelift lays the foundation for BYD's sales volume. In contrast, the Fang Cheng Bao Bao 9, S GT, and the 2026 plug-in hybrid version of the Tai 7 target the hardcore SUV market. The all-electric coupe Denza Z from the high-end Denza brand aims to open up a new track with the support of BYD's technology, thereby increasing per-unit profit and reshaping brand profitability. In the second half of the year, BYD's second-generation Blade Battery and intelligent driving capabilities will face tests. Facing it are heavy deployments by automakers such as Geely Galaxy, Leapmotor, Xiaomi, and Aito in its strong product price segments. Wang Chuanfu's judgment that "the worst moment has passed" still needs to be validated by the market. It depends on how many second-generation Blade Batteries BYD can deliver in the second half of the year, and more importantly, whether the end-to-end intelligent driving experience in BYD's models priced between RMB 250,000 and 350,000 can catch up with the first tier. Looking back at BYD's layout for the second half of the year, it is actually similar to before. The product sequence remains a combination of entry-level volume drivers and high-end upward mobility. It continues to use the Yuan UP and Qin L to hold the mainstream market, while using high-end products like the new Han, Tang 8 Series, and the high-end Denza brand to break through upwards, even following the same line of thought as in the first half of the year. Signs of insufficient momentum in BYD's domestic market were already quite evident in the first half of this year. Geely, Leapmotor, and others are continuously catching up in the market, and what BYD fears most is standing still. Electric Planet Risk Warning and Disclaimer The market involves risks; investment should be approached with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. 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