SHENZHEN: BYD Co led a selloff of Chinese electric vehicle makers in Hong Kong on Monday, after soft January sales figures signaled demand is cooling in the world's biggest auto market.
BYD shares fell as much as 5.1% in early trading - the most in three months - after reporting sales fell 30% last month from a year earlier.
Smaller rivals Xpeng Inc and Nio Inc both fell more than 6% after also reporting disappointing January sales.
The selloff dragged down the entire sector, with even Geely Automobile Holdings Ltd - which outsold BYD by about 60,000 units last month - falling 2.6%.
The January slowdown underscores a broader 'delivery hangover' affecting Chinese automakers.
The expiration of several local green-car subsidies in late December pulled demand forward, leaving January's order books thin, while a new 5% purchase tax on EVs cooled consumer appetite for mid-range models.
Now the world's top EV maker, BYD is increasingly leaning on its international strategy to provide a floor for its valuation.
Overseas shipments, however, fell 25% month-on-month in January "likely due to front loading," Tim Hsiao, an analyst at Morgan Stanley, wrote in a note.
The carmaker has said it wants to increase deliveries to markets outside China by nearly 25% to 1.3 million cars this year.
Analysts expect BYD's total sales to rise to more than 5 million units this year from 4.6 million last year.
