HONG KONG: BYD shares sank to their lowest level in at least a year on Monday (Feb 2), leading a broader selloff in Chinese automaker stocks 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.
“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.
Automakers face renewed pressure just as intense price competition erodes margins, technological gaps narrow among rivals and hopes that exports can offset weak domestic sales are being scaled back.
Shenzhen-based BYD’s Hong Kong-listed shares ended down 6.9 per cent at HK$91 (US$11.70), marking their biggest one-day percentage drop since May 26, 2025, after hitting the lowest in about a year during the day.
In Shenzhen, BYD’s mainland-listed shares closed down 4.2 per cent at 87.05 yuan after hitting their lowest point since September 2024.
Peers including Geely, Leapmotor, Xiaomi and Xpeng also ended down between 1.2 per cent and 6.8 per cent.