Chinese electric vehicle (EV) maker BYD (BYDDF) (HK:1211) reported a decline in its monthly sales for the first time in 19 months, while domestic rivals delivered notable growth. BYD’s September sales volume for new energy vehicles (NEVs) declined 5.5% year-over-year to 396,270 units. The company’s performance compared to its rivals reflected the impact of intense competition in the Chinese EV market and the government’s crackdown on its aggressive discount strategy.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Meanwhile, EV giant Tesla (TSLA) reported better-than-anticipated Q3 deliveries, as customers made purchases ahead of the end of the $7,500 federal EV tax credit.
BYD’s September Sales Reflect Competitive Concerns
BYD has grown rapidly in recent years, overtaking EV giant Tesla in terms of volumes in 2024. However, competition in the EV market has intensified. BYD and other Chinese players recently faced backlash from the industry and regulators for continued price cuts that are harming the margins of EV makers. Amid ongoing challenges, Reuters reported last month that BYD has lowered its 2025 deliveries goal to 4.6 million vehicles from 5.5 million units.
While BYD’s September NEV sales declined, several rivals in the Chinese EV market reported strong growth in their monthly deliveries. Leapmotor (HK:9863) reported a 97% year-over-year growth in its September deliveries. Furthermore, XPeng (XPEV) and Nio (NIO) reported a 95% and 64% year-over-year growth, respectively, in their September deliveries. Meanwhile, Li Auto’s (LI) September EV deliveries declined about 37% year-over-year but marked a 19% sequential growth.
Amid intense competition and market saturation in the domestic market, BYD is focused on capturing growth opportunities in the international markets. According to the South China Morning Post, BYD expects its exports to account for about 20% of its overall sales in 2025.
Is BYDDF Stock a Good Buy?
Despite the September setback, Wall Street has a Strong Buy consensus rating on BYD Co. stock based on eight Buys and two Hold recommendations. The average BYDDF stock price target of $25.64 indicates 76.2% upside potential. BYDDF stock has risen more than 28% year-to-date.
