Electric carmaker BYD cut its full-year sales target by 16% to 4.6 million units after a 30% quarterly profit decline and flat deliveries in July–August, citing intensifying competition in China’s EV market from Geely, Xpeng, and Xiaomi.
Competition remains tight with “about 50 automakers” repeatedly cutting prices to win customers. Beijing has moved to discourage what officials call “involution,” or excessive competition.
On July 30, President Xi Jinping told a Politburo meeting: “It is a must to reinforce industry self-discipline to prevent vicious ‘involution’ competition.”
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Market data confirm the slowdown as the China Passenger Car Association said China-made EV sales fell 4% year over year in August, after an 8.4% decline in July.
BYD shares fell 3% in Hong Kong trading, though they remain up about 10.5% year-to-date and are 23% below record highs reached earlier this year.
For Tesla, China remains the second-largest market. A refreshed Model Y launched earlier this year, but sales so far have been underwhelming, with lower deliveries in the first seven months versus a year earlier.
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