BYD's recent implementation of trade-in incentives has precipitated a notable decline in Chinese automotive stocks, highlighting the fragility of the market amidst intensifying competition. The company's decision to offer significant discounts on over 20 models, including a reduction in the Seagull hatchback's starting price to 55,800 yuan ($7,765), has exacerbated an already competitive price environment . This strategic move is indicative of BYD's response to increasing dealer inventories and ambitious sales targets but raises concerns about long-term sustainability within the industry.
The electric vehicle manufacturer sold 382,476 vehicles last month, including 376,930 passenger cars, according to a statement Sunday. While that marked a high point for this year, the year-on-year growth of 15% was the slowest since August 2020, except for a drop in deliveries in February last year due to the Lunar New Year holiday.
Despite the sales boost, BYD’s stock dropped almost 5% in Hong Kong. That follows a more than 15% slump last week after a series of reports over the weekend indicated the industry’s lengthy price war has caught the Chinese government’s attention.
BYD sold 382,476 vehicles in May, up 0.6% vs. April and 15.3% vs. a year earlier. Deutsche Bank had forecast May sales of 390,000.
Overseas sales hit 89,047, a sixth straight monthly record.
Among passenger EVs, sales of fully battery electric vehicles (BEVs) were 204,369, up 4.4% vs. April and 39.6% vs. a year earlier. Passenger plug-in hybrids (PHEVs) were 172,561, down 2.4% vs. April and 6.3% vs. a year earlier.
In April, BYD sold more BEVs than PHEVs for the first time in more than a year. The Tesla rival is now the clear global leader in BEVs as well as EVs overall.
BYD also sold 5,546 commercial EVs, including trucks, buses and more.
BYD's power battery and energy storage battery installations in May totaled about 28.476 GWh, up 7.55% vs. April and 101.1% vs. May 2024.
The European Union slapped tariffs on imports of China-made electric cars after probing the companies over the use of government subsidies in their manufacture. The U.S. also imposed duties of 100% on China-made electric cars, quashing hopes that the vehicles might enter the world’s second-largest auto market.
But in the EU, tariffs have had limited effect. In April, BYD outsold Tesla in Europe for the first time, according to JATO Dynamics. Tesla’s Europe sales plunged by 49% that month, according to the European Automobile Manufacturers’ Association.
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