Shares of BYD sank to their lowest level in at least a year on Monday, leading a broader selloff in Chinese automaker stocks, reports Reuters. This came after they reported weaker sales in January as a revised subsidy scheme weighed on budget car brands.
The selloff underscores growing investor concern that China’s carmakers are heading into a prolonged slowdown as demand softens at home and policy support becomes less generous. Shenzhen-based BYD’s Hong Kong-listed shares ended down 6.9% at HK$91, marking their biggest one-day percentage drop since May 26, 2025, after hitting the lowest in about a year during the day.
“Investors were likely surprised by the large degree of the domestic decline which implies a sharp market share loss,” said Eugene Hsiao, head of China equity strategy at Macquarie Capital. “Overall, we do not expect to see a meaningful turnaround in domestic demand until BYD launches new models with higher value for money compared to rising competitors in the space,” he added.