BYD sales drop for third month as EV competition heats up
The decline is particularly notable as it comes during what is supposed to be a busy period
[BEIJING] BYD’s sales fell for a third straight month as the world’s largest electric vehicle maker faces intensifying competition from rivals churning out popular models.
The company delivered 480,186 vehicles in November, a 5.3 per cent drop from the same period a year earlier.
The decline is particularly notable as it comes during what is supposed to be a busy period. Consumers are expected to rush to showrooms in the final quarter to lock in purchases ahead of the Dec 31 expiration of the country’s full new-energy vehicle tax exemption.
It is also a potential sign of consumer fatigue with BYD’s offerings. The company is facing an erosion of market share in both the mass-market and more premium segments, particularly from Geely Automobile Holdings’ revitalised lineup and and Xiaomi’s hit models such as the YU7.
Overall sales for BYD now needs to sell about 418,000 units in December to meet its reportedly adjusted full-year target of 4.6 million.
Profits have plunged in back-to-back quarters as the company found itself at the centre of China’s efforts to rein in the sprawling EV industry – including a crackdown on the aggressive discounting that has underpinned BYD’s sales.
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While exports provided a rare bright spot with 131,935 units shipped, they were not enough to offset the weakening domestic demand.
BYD’s overseas expansion plans also face their own hurdles, with rising trade barriers in Europe and North America limiting the company’s ability to pivot volume away from the saturated Chinese market. BLOOMBERG
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