Electric vehicle (EV) manufacturer BYD has been facing a continuous decline in sales for the past eight months, according to the company's financial report. With the addition of competitors such as Geely, Lipmotor, and Xiaomi in the Chinese market, BYD is facing pressure in the domestic market. 

Analyzing the company's latest financial statements, Reuters reported that its sales in April shrank by 15.5 percent due to falling demand in China. In the first quarter of 2026, the company's total revenue fell by about 12 percent to 150.2 billion yuan. 

It is estimated that BYD's demand has decreased after local competitors introduced cheaper vehicles. Despite the slowdown in the Chinese market, the company is making good progress in the international market, according to the news titled 'BYD Profits Drop...' by The Financial Times.

BYD's foreign exports increased by 35 percent in April. The company's financial statements state that it exported 130,000 units of vehicles abroad in a month. The company aims to sell more than 1.5 million vehicles abroad by 2026.

According to CNBC and other media outlets, local media have pointed out that BYD's domestic demand has also decreased due to the Chinese government's reduction in tax incentives for electric vehicle purchases. BYD has now increased investment in premium models and fast-charging battery technology.

The company is being analyzed as trying to balance the losses suffered in the domestic market through global expansion and new technologies. But BYD, which was China's largest automaker in 2025, fell to fourth place in the first months of 2026.

Smartphone maker Xiaomi caused a big stir in the market when it unveiled its first EV, the 'Speed ​​Ultra Seven', two years ago. It has provided an alternative to BYD, especially for young customers. Xiaomi's website states that it sold a total of 411,82 smart EVs in 2025.

Xiaomi said it sold more than 59,000 units in the first two months of 2026, up 48 percent from the same period last year. “When bookings for the new-generation EV went public in March 2026, more than 15,000 orders were received in 34 minutes and more than 30,000 in the first 3 days,” the company claims.

Some believe that other brands such as Lipmotor, Geely, and Chery have also surpassed BYD in technology and features. CNBC-TV 18 analyzes that BYD is currently lagging behind, especially in terms of ‘smart driving’ and ‘software.’ New EVs that include software and hardware built by Huawei are currently popular in China. However, BYD is considered stronger than its competitors because it has its own battery, semiconductor, and motor manufacturing capabilities.

CNBC-TV 18 quoted Hong Kong investment expert Charles Fang as saying that BYD’s products are outdated. According to Fang, no company can keep its technology and product cycle the same forever, and that is also happening in the case of BYD.

As customers are attracted to new technologies and models, BYD is said to be focusing on developing new technologies such as ‘Blade Battery 2.0’ and ‘God’s Eye’. The Chinese government is also expected to abolish the 5 percent tax exemption on new energy vehicle purchases by the end of 2025, which is also expected to reduce demand.

Domestic market BYD is now changing its strategy and focusing on international markets (especially Europe). ‘The company has been able to set new standards in the entire industry through innovations such as blade batteries and Super DM technology,’ the company writes on its website, ‘We have diversified into auto, rail transit, renewable energy and electronics.’