Chinese electric vehicle giant BYD (1211) snapped its longest streak of declining sales in May, despite weakening domestic demand and intensifying competition continuing to weigh on performance.
Vehicle sales globally grew 0.3 percent from a year earlier to 383,453 units last month, according to Reuters calculations based on a stock filing on Monday, following eight months of sales contraction.
Production at the world's largest EV maker rose 8.8 percent year-on-year last month, ending a streak of consecutive declines that had persisted since July 2025.
Overseas shipments continued to post robust growth, offsetting persistent softness at home where BYD's sales fell 24 percent, shrinking for the 13th straight month. Sales abroad rose 80.4 percent year-on-year to 160,644 units in May, supported by stronger demand for EVs in Europe and emerging markets driven by higher oil prices following the US-Israeli war with Iran.
BRUISING COMPETITION AT HOME
BYD and other Chinese automakers have been gaining traction in Europe as demand for EVs continues to support overall market growth.
Its home market, however, remains challenging following a bruising price war. BYD's budget segment, a key pillar of its volume strategy, has been particularly vulnerable as government subsidies fade and consumer demand softens in a slowing economy.
"Geely's Galaxy series is pulling buyers away from BYD in the mass-market segment with strong branding and competitive pricing, while Leapmotor is appealing to practical consumers with low sticker prices," said Li Yanwei, an analyst at the China Automobile Dealers' Association (CADA).
Leapmotor sold 81,569 cars in May globally, up 81 percent from the year before. Reflecting a broader industry move away from pure price competition toward differentiation and value, BYD has stepped up efforts to move upmarket. In May, it launched an upgraded version of its flagship SUV under its premium Denza brand. The company is also pushing ahead with efforts to build trust in assisted-driving to maintain its technological edge. On Thursday, it announced it would fully cover for a year compensation and repairs for any accidents arising when drivers use its City Navigation function, alongside what it said were other breakthroughs.
BYD is constrained by Beijing's push to curb further price cuts in the sector, while its intelligent-driving upgrades have yet to persuade lower-tier market buyers to pay a premium, CADA's Li said. This has left BYD dealers struggling with relatively uncompetitive pricing and sluggish sales despite the company's technology improvements, he added.
Reuters
