BYD is currently free-falling in the Chinese market as its competitors gain impressive ground. Following the crackdown on aggressive discounting strategies used by Chinese automakers, the sector’s leader is experiencing a decline in market share and investor confidence. The Chinese vehicle industry is seeing a seismic shift as BYD Co., the nation’s biggest EV maker, struggles to keep up momentum while smaller competitors rapidly gain ground. The company reported a steep profit decline that demoralized its investors, and the Shenzhen-based automaker has since been contending with poor sales in its core domestic market. BYD loses ground to competitors in China’s EV market In August, BYD’s sales rose by an underwhelming 0.1% year-on-year. In contrast, Geely Automobile Holdings reported a 38% jump in sales, while Leapmotor Technology Co. and Nio Inc. both achieved record deliveries in the same time period. Xpeng Inc., meanwhile, has already sold more than three times as many vehicles as it had at this point last year. BYD’s rise to market dominance was due to its aggressive discounting strategy, but Beijing has recently pressured automakers to stop exploiting such tactics over concerns of a destructive price war that could destabilize the industry. According to Bloomberg’s calculations , BYD’s domestic sales fell almost 15% in August. Its market share also slipped slightly in July to 14.4%, despite the fact that it was far ahead of smaller competitors in terms of overall deliveries. Year-to-date, the Chinese giant has sold nearly 2.9 million vehicles, which is about ten times larger than Xpeng and Li Auto’s sales. EV maker falls short of projections Stellantis-backed Leapmotor sold a record 57,066 vehicles in August, bringing its year-to-date total to almost 329,000 units. The company now holds 1.7% of the Chinese market and is pushing to hit its ambitious 2025 target of 580,000 to 650,000 units. Xpeng continues to win over buyers with intelligent, tech-heavy models priced competitively against BYD and Geely offerings. It delivered a record 37,709 units in August, while newcomer Xiaomi Corp. , best known for its smartphones, sold more than 30,000 EVs during the month, raising its 2025 total to about 210,000 units so far. Geely, however, has emerged as the standout rival to BYD, with a 63.2% progress toward its 2025 target. BYD has set an ambitious goal of selling 5.5 million vehicles in 2025, including 800,000 units abroad. To achieve this, the automaker would still need to deliver more than 2.6 million vehicles in the final four months of 2025. Considering that the company sold just under 2.9 million units in the first eight months of the year, Bloomberg analysts estimate that the company may fall short of those goals, selling around 4.9 million units. Sanford C. Bernstein offered a slightly higher projection of 5.1 million units. Earlier this week, BYD reported a 30% drop in second-quarter profit, which caused a loss of around $6 billion off its market value as shares tumbled. That loss and the Chinese government’s decision to curb the company’s successful discount strategy have raised concerns over whether BYD can sustain its lead position in the industry. KEY Difference Wire helps crypto brands break through and dominate headlines fast
