While the slowdown isn’t unexpected given China’s new car sales are typically weak in the summer, BYD faces headwinds in hitting its annual goal of 5.5 million units. Chinese authorities have stepped up scrutiny on the nation’s auto sector, pledging to crack down on the heavy discounts that have fuelled a price war.
Having sold 2.49 million units through July, the maker of the electric Seagull hatchback now needs to deliver on average roughly 602,000 vehicles a month for the rest of the year to reach its target. The most vehicles BYD has ever sold in a single month was just shy of 515,000 last December.
Most rivals are showing signs of resilient demand. Geely Automobile Holdings Ltd. sold 237,717 cars in July, its highest since November. Meanwhile, Stellantis NV-partner Leapmotor and Xpeng Inc. achieved new monthly records, delivering 50,129 and 36,717 vehicles, respectively.Fellow upstart Xiaomi Corp. also reported record deliveries of more than 30,000 units. In contrast, Li Auto Inc.’s 30,731 units were down about 40% from a year earlier. Li Auto shares fell as much as 2.6% in Hong Kong trading on Monday.
China’s Passenger Car Association last week said that retail passenger vehicle sales in July were estimated to grow 7.6% from a year earlier, though they would be down 11% from June.
Nio Inc. continued to struggle as it posted a 16% month-on-month fall in sales, recording its smallest sales volume since March. Nio’s shares jumped 8.6% Friday, after the launch of its Onvo L90 model, which analysts see as attractive in its pricing and offering.
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