BYD Shares Plummet as July Sales Raise Concerns Over Annual Target

BYD's shares fell 1.5% in Hong Kong after reporting a 10% decline in July sales, raising concerns about meeting its annual sales target. Despite a sequential decline, analysts believe 5 million to 5.2 million unit sales are still achievable, with BYD having sold 2.5 million cars as of July. Chinese automakers saw subdued sales in July due to soft demand and Beijing's campaign to reduce competition. BYD had relied on price cuts to boost market share, but the government is working to prevent unhealthy competition in the domestic EV market.

BYD Co.'s shares fell 1.5% in Hong Kong on July 2, 2025, following the company's announcement of a 10% decline in July sales. Despite this setback, analysts remain cautiously optimistic about BYD's ability to meet its annual sales target. The company sold 344,296 vehicles in July, marking a 0.6% year-over-year increase but a 10% decrease from June [1].

The slowdown in sales was primarily driven by a continued slump in plug-in hybrid electric vehicle (PHEV) sales. BYD sold 163,143 passenger PHEVs in July, a significant decrease of 22.61% from the previous year and a drop of 4.45% from June. This represents the fourth consecutive month of declining PHEV sales and the fourth month in a row that BEV sales have outpaced PHEV sales [1].

Passenger NEVs accounted for the vast majority of July’s sales at 341,030 units. This segment saw a minimal year-over-year increase of 0.07% but a nearly 10% drop from June. Battery Electric Vehicles (BEVs) remained a bright spot, with sales surging by 36.84% year-on-year to 177,887 units. However, this marks the first month-over-month decline in passenger BEV sales since February [1].

Commercial NEVs sales also experienced a sharp monthly decline of 34.11%, although they more than doubled compared to last year. Overseas sales continued their upward trajectory, growing an impressive 169% year-on-year to 80,737 vehicles, but also saw a monthly dip of 10.34% [1].

Despite the slower July, BYD’s year-to-date performance remains robust. From January to July, the company sold 2,490,250 NEVs, a solid 27.35% increase compared to the same period in 2024. Total Passenger NEVs: 2,454,301 units, up 25.99%. Total Commercial NEVs: 35,949 units, a massive increase of 384.36%. Total Overseas Sales: 545,003 units, up 133.49% [1].

Analysts believe 5 million to 5.2 million unit sales are still achievable for BYD, with the company having sold 2.5 million cars as of July. Chinese automakers saw subdued sales in July due to soft demand and Beijing's campaign to reduce competition. BYD had relied on price cuts to boost market share, but the government is working to prevent unhealthy competition in the domestic EV market [2].

The slowdown in BYD's sales is not unexpected given the typical weak performance of the Chinese new car market in the summer. However, the company faces headwinds in hitting its annual goal of 5.5 million units. The most vehicles BYD has ever sold in a single month was just shy of 515,000 last December. To reach its target, BYD needs to deliver on average roughly 602,000 vehicles a month for the rest of the year [2].

Rivals such as Geely Automobile Holdings Ltd., Stellantis NV-partner Leapmotor, and Xpeng Inc. showed signs of resilient demand, achieving new monthly records in July. In contrast, Li Auto Inc. saw a 40% decrease in sales from a year earlier [2].

BYD's factory in Szeged, Hungary, is set to open this year, with plans to produce 150,000 compact all-electric sedans annually by 2026, rising to 300,000 cars a year by 2030. This expansion is part of BYD's all-out push for global primacy in the electric vehicle market, currently dominated by Tesla [3].

References:
[1] https://electriccarsreport.com/2025/08/byds-july-sales-show-slowdown-despite-strong-bev-growth/
[2] https://www.bloomberg.com/news/articles/2025-08-01/byd-sales-sputter-as-competition-regulatory-scrutiny-grow
[3] https://fortune.com/2025/07/29/byd-china-electric-cars-europe-hungary-manufacturing/