BYD Stops Sales Bleed — Turning Point?
As we’ve reported month after month, BYD sales have been down all year in 2026 compared to the same period in 2025. There are some obvious negative causes, like modest subsidy cuts in China. However, there are actually some strongly positive reasons for it as well. BYD has launched some much improved charging and battery technology, and many buyers are rightly waiting for new models with that technology before buying a new BYD.
In fact, BYD is actually expecting 13% sales growth this year overall. A hot new Yuan Plus should certainly help in that regard when it hits markets. Larry Evans’ comment from last month on the topic is worth repeating as well:
“BYD is in the middle of the largest product transition in their history since the last generation Blade Battery was launched. One of the first mainstream models to ramp up (Song Ultra) sold 61,240 in its first month. And supply is still the limitation. I was able to drive that car at a dealer and understand why it is selling so well.
“However, other than having demo models of that car on hand, the dealer supply was gutted. They had a few older DM-i models, like the Song Pro and Qin Plus. Models that BYD didn’t even bother to bring to the Beijing Auto Show. But they were still waiting on new models. And they were waiting on their flash charging pile to be installed, while the foundation was already poured. That was anticipated in the next week. The inventory situation could also change quickly, but production ramp up takes time.
“People are not buying many of the handful of older models that they are trying to clear out. They want the new models that are rolling out across their lineup. Updated models with better tech, longer range and recharging times as fast gasoline can refill. They are also waiting on better new generation models (e.g., Yuan Plus) and new models (e,g., Seal 08).
“BYD does not have a demand issue for its new cars, it just does not have enough of its new cars available yet. Wait until the flash charging models ramp up.”
Perhaps the tide is starting to turn. Last month, BYD’s passenger vehicle sales were basically even year over year. There was 0% growth, but 0% is better than -10%! Technically, the company had the slightest increase in sales. It went from 376,930 sales in May 2025 to 376,990 sales in May 2026.
Unfortunately, BEV sales still didn’t turn a corner. They were down 2.8% year over year, while plug-in hybrid sales were up 3.3%.
While the year-over-year trends are mixed, and neutral overall, the month-over-month trends are very strong. BYD’s passenger vehicle sales, all plug-ins, were up 20% in May. BEVs were up 26.6%, and plug-in hybrids were up 13.5%. Not bad. The key will be continuing the trend and achieving sales growth again in June, hopefully even increasing sales significantly year over year. We will see. I’m certainly assuming this is a turning point and expect to see strong growth in June. What do you think?
