Life atop China's car market starting to look shaky for BYD

Life at the top is proving complex for China's leading automaker, and there are fresh challenges on the horizon.

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HONG KONG -

BYD's monthly sales have stagnated of late and with the summer months being a traditionally slower time for consumer purchases, that trajectory is not expected to reverse any time soon.

Discounting is also now being looked sternly upon by Beijing, with China last week pledging to rein in "irrational competition" in the electric vehicle (EV) sector, reflecting the authorities' wish to tackle the deflationary price wars that are threatening economic and industrial growth.

Some of BYD's international forays are also proving more challenging than expected, raising the question: Is China's No. 1 automaker on shaky ground?

Analysts are now doubting whether BYD can hit its 5.5 million units sales target for 2025, in what would be a rare miss after a multi-year bull run.

The number of electric and hybrid vehicles BYD needs to sell each month through December has hit 560,000 units, in excess of levels it could hope to achieve typically in a single month. The most vehicles BYD has ever sold in a month was just shy of 515,000, in December 2024.