The era of BYD hitting a new record high may come to an end as the company’s growth entered the slowest pace in five years, while its sales target got sliced by 16% from 5.5 million units to 4.6 million, according to two anonymous sources.
In the first eight months of the year, BYD only met 52% of its original sales goal. Its quarterly profit also dropped by 30%, the first decline in more than three years. Furthermore, according to Reuters’ analysis, the company’s sales of its economy cars in July had decreased by 9.6% YoY.
The sources did not disclose the reason for lowering the goal target, but one source cited growing competition from its peers, such as Geely Auto and Leapmotor. There is also China’s economic situation as the company faces weak domestic demand and price war.
BYD is an EV upstart that managed to become one of the world’s leading automakers and compete with major brands, such as General Motors and Ford. Its sales of EV and plug-in hybrids grew exponentially in a few years and reach 4.3 million units by 2024.
While BYD’s era is seeming to end, its competitor is rising. Geely’s sales of its economy cars in July soared 90% YoY. In its earnings conference back in August, the company’s executives stated that its sales target this year had increased from 2.71 million vehicles to 3 million.
