BYD Slashes Annual Sales Target As Demand Slumps, Competition Intensifies
China’s hyper-competitive electric vehicle market means that even top players, such as BYD Auto, are no longer immune, as smaller players continue to gobble up increasing market share. This comes as growth in the world’s largest EV market slowed over the summer, with mounting headwinds expected this fall.
BYD, the world’s largest EV maker, slashed its full-year sales target to 4.6 million units, down a whopping 16% from its previous estimate of 5.5 million, according to a Reuters report. The downshift in forecast was attributed to intensifying competition in China’s EV market from rivals such as Geely, Xpeng, and Xiaomi. BYD also reported a 30% plunge in quarterly profit and flat deliveries in July to August.
*BYD CUTS 2025 SALES GOAL AS MUCH AS 16% TO 4.6M VEHICLES: RTRS
— zerohedge (@zerohedge) September 4, 2025
Despite the cut, one Wall Street analyst noted that the new target is more realistic and aligns with buy-side expectations…
Sanford C Bernstein analyst Eunice Lee told clients that a „lower target is largely in line with buy-side expectations now and should be achievable,” adding, „This could also be a near-term clearing event for the stock.”
Shares fell 3% in Hong Kong trading, signaling the gloom was likely priced in. Year-to-date, shares are up about 10.5%, trading 23% below record highs reached earlier this year.
The New York Times’ Keith Bradsher, who has covered China’s auto industry for over two decades, noted, „Already, fierce competition among automakers has gotten ruthless, with about 50 automakers fighting for customers by slashing prices again and again.”
Bradsher said excessive competition caught the attention of Beijing in recent months, with top officials unveiling a campaign against „involution, which they define as excessive competition.”
On July 30, President Xi Jinping declared at a Politburo meeting on the economy, „It is a must to reinforce industry self-discipline to prevent vicious 'involution’ competition.”
The latest figures from the China Passenger Car Association showed that China-made EV sales fell 4% in August from the same period a year ago, following an 8.4% drop in July.
For Tesla, China is its second-largest market, after the US. It launched a refreshed version of its best-selling Model Y earlier this year; however, sales so far this year have been underwhelming, with lower deliveries in the first seven months compared to the same period last year.
Both BYD and Tesla have underperformed this year.
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Tyler Durden
Thu, 09/04/2025 – 06:55
