BYD’s Sluggish July Sales Raise Concerns Over Annual EV Target
BYD Co., the world’s leading electric vehicle (EV) manufacturer, reported only marginal growth in July 2025, delivering 344,296 vehicles—up just 0.6% year-on-year and down 10% from June. The weak performance casts doubt on the company’s ability to meet its ambitious annual target of 5.5 million vehicles. With 2.49 million units sold through July, BYD must now average over 602,000 deliveries per month—well above its December 2024 record of 515,000.
The slowdown aligns with seasonal trends in China’s auto market but is further complicated by government scrutiny of aggressive discounting practices. Despite the pressure on BYD, rivals like Geely, Leapmotor, Xpeng, and Xiaomi posted record sales in July, indicating robust demand elsewhere in the sector. Geely led with 237,717 units, while Leapmotor and Xpeng delivered 50,129 and 36,717 vehicles, respectively. Xiaomi exceeded 30,000 units for the first time.
In contrast, Li Auto's deliveries fell 40% year-on-year to 30,731 units, and Nio Inc. saw a 16% month-on-month drop—its lowest sales since March. However, Nio’s stock surged 8.6% following the launch of its new Onvo L90 model, which analysts say is well-priced and compelling in features.
The China Passenger Car Association estimated a 7.6% year-on-year growth in retail vehicle sales for July but noted an 11% drop compared to June, reflecting broader seasonal and regulatory challenges in the EV market.
The slowdown aligns with seasonal trends in China’s auto market but is further complicated by government scrutiny of aggressive discounting practices. Despite the pressure on BYD, rivals like Geely, Leapmotor, Xpeng, and Xiaomi posted record sales in July, indicating robust demand elsewhere in the sector. Geely led with 237,717 units, while Leapmotor and Xpeng delivered 50,129 and 36,717 vehicles, respectively. Xiaomi exceeded 30,000 units for the first time.
In contrast, Li Auto's deliveries fell 40% year-on-year to 30,731 units, and Nio Inc. saw a 16% month-on-month drop—its lowest sales since March. However, Nio’s stock surged 8.6% following the launch of its new Onvo L90 model, which analysts say is well-priced and compelling in features.
The China Passenger Car Association estimated a 7.6% year-on-year growth in retail vehicle sales for July but noted an 11% drop compared to June, reflecting broader seasonal and regulatory challenges in the EV market.
