BYD sees first sales decline in 18 months amid fierce competition in China’s EV market

The decline comes as the company slashed its sales goal for this year by 16% to 4.6 million units

Electric vehicle juggernaut BYD’s monthly sales fell for the first time in more than 18 months even as the company’s domestic rivals reported strong gains amid fierce competition in the Chinese market.

Shipments declined 5.5 per cent to 396,270 units last month, marking BYD’s first on-year contraction since February 2024. Excluding fluctuations around the Chinese New Year holiday, it would be the first fall in shipments since 2020, when Covid disrupted supply chains and daily lives.

The decline comes as the company slashed its sales goal for this year by 16 per cent to 4.6 million units, although a senior executive said the move reflects BYD’s nimble response to a changing market and the revised target is still an achievement.

With September and October usually busy months for the auto market in China, BYD and its peers will likely look to make the most of the final quarter to meet their annual sales targets.

A purchase tax on select EVs will return in increments from 2026, leading analysts to forecast a bump in deliveries as consumers look to take advantage of the tax break before it expires.

In contrast, Geely Automobile Holdings is fast catching up with its larger rival, selling 273,125 units in September, representing growth of 35 per cent compared to a year earlier.

The group is going through a restructuring to help it better compete with BYD, including privatising its Zeekr EV brand, which is in the process of withdrawing from the New York Stock Exchange.

Other brands that also enjoyed a booming September include Xpeng, which saw deliveries soar 95 per cent on year to 41,581 units and Zhejiang Leapmotor Technology, which increased sales by 97 per cent to 66,657 units.

With Beijing calling on several industries, including automobiles, to end the unsustainable price wars, manufacturers could struggle to maintain their sales momentum through steep discounts. Although the government’s campaign seems to have has only a limited effect on carmakers. BLOOMBERG