Chinese electric vehicle (EV) giant BYD Co. reported sluggish sales for July, raising concerns over whether the world’s largest EV maker can hit its ambitious annual target of 5.5 million vehicle deliveries. According to data reported by Bloomberg, BYD sold 344,296 vehicles last month — a marginal 0.6% increase year-on-year, but a sharp 10% drop from June.
The slowdown, while partially expected due to traditionally soft summer sales in China’s auto market, comes amid intensifying regulatory scrutiny and a price war that has begun to weigh on margins and competition. Chinese regulators recently pledged to crack down on steep discounting practices that have driven intense rivalry among EV makers.
With 2.49 million vehicles sold through July, BYD now faces an uphill climb: it must average approximately 602,000 monthly deliveries over the next five months to reach its year-end goal. That figure far exceeds its monthly record of just under 515,000 units, set in December 2024.
“BYD’s 2025 sales goal now looks like a stretch,” Bloomberg noted in its analysis. The company’s performance starkly contrasts with a wave of momentum seen among several rivals.
Geely Automobile Holdings Ltd. posted its highest monthly deliveries since last November, reaching 237,717 units in July. EV newcomers Leapmotor and Xpeng Inc. also notched fresh records, delivering 50,129 and 36,717 vehicles respectively. Even Xiaomi Corp., a relative newcomer to the EV space, crossed the 30,000-unit milestone for the first time.
By contrast, Li Auto Inc. saw a steep 40% drop in deliveries year-over-year to 30,731 units, while Nio Inc. logged a 16% month-on-month decline, reaching its lowest sales since March. Still, Nio shares surged 8.6% on Friday following the launch of its new Onvo L90, which analysts have praised for its competitive pricing and features.
According to the China Passenger Car Association, total retail passenger vehicle sales in July are expected to rise 7.6% from a year earlier — but still mark an 11% decline compared to June.
BYD, known for its popular Seagull hatchback, remains a dominant force in the global EV market. However, with regulatory headwinds, mounting competition, and the strain of a high delivery target, analysts and investors will be closely watching whether the automaker can rebound in the second half of the year.
As Bloomberg reported, “Life atop China’s car market is starting to look shaky for BYD.”
