BYD monthly sales fall for first time since early 2024
BYD sales fell for the first time in 19 months in September following lukewarm demand in China and government pressure to rein in cut-throat price competition.
The Chinese electric vehicle champion sold just over 396,000 cars last month, down 5.5 per cent from a year earlier, according to a Hong Kong stock exchange filing on Wednesday.
The decline ended a growth streak that began in February 2024 for the Shenzhen-based company, which analysts said would increase pressures for the Tesla rival to expand sales outside China.
“really doesn’t care about the domestic market any more”, said Feng Xiao, co-head of China industrial research at CLSA, estimating that profits from exports would account for more than half its total earnings for the first time next year.
Rather than cut prices and face potential punishment from regulators, he said BYD “chose to lie down in China”.
The group has slashed its internal annual sales target to 4.6mn from 5.5mn units — a decision that Li Yunfei, BYD’s marketing chief, described as a “healthy, sustainable” move in a recent interview with local media.
BYD’s most recent
in May triggered a crackdown from Chinese regulators on a years-long price war that had eaten into industry-wide profits. Since then, BYD and its rivals have been forced to hold off aggressive price cuts and make timely payments to their suppliers.
Analysts have also warned that Chinese buyers are awaiting a refreshed BYD model range. Feng of CLSA said: “The products get old and established . . . buyers are getting bored of the BYD logo and BYD looks.”
Despite a slowdown in China, BYD has posted strong growth abroad. In Europe and the UK, its
from last year to 96,000 vehicles in the first eight months of this year for a 1.4 per cent market share in August, according to European car industry body Acea.
In September, Stella Li, BYD’s vice-president in charge of the group’s overseas business, stressed that its overall profits would remain strong despite a short-term decline in sales. “We don’t worry too much. We just invest more on research and development,” she said.
Exports of BYD’s battery-powered vehicles and plug-in hybrids to overseas markets more than doubled to more than 700,000 units in the first nine months of the year.
Warren Buffett-owned Berkshire Hathaway, an investor in BYD since 2008, had been gradually selling down its stake before making a full exit this year.
For the January to September period, BYD’s sales increased 18 per cent to 3.2mn vehicles, far lower than a 114 per cent rise in EV and hybrid sales for rival
.