Byd has reduced its sales target for this year to 16%, to 4.6 million vehicles, two people told the Reuters agency file, while the manufacturer of Chinese electric vehicles has faced its lowest annual growth in five years.
Strong competition in the Chinese market
The largest Chinese car manufacturer told analysts in March that he was pointing to sales of 5.5 million vehicles by 2025. Internally, this figure has been reviewed down several times in recent months, according to those questioned.
The last figure, at least 4.6 million vehicles, communicated within the company and certain suppliers last month to help orient planning, sources said in anonymity.
The objective is likely to be modified according to market conditions, they said. They did not give the reason for this reduction. One of them said, however, that this decision occurs when Byd faces the growing competition of rivals such as Geely Auto and Leapmotor.
Last week, Byd announced a 30% drop in its quarterly gain, the first for more than three years. Byd did not respond to a request for a comment as part of this office.
The objective of the Chinese group mentioned by the sources is less than several recent forecasts decreased by analysts.
Brake on growth
This week, Deutsche Bank said he expected Byd to sell 4.7 million vehicles, while Morningstar has a figure of 4.8 million.
The new objective represents a 7% increase compared to last year and would constitute the slowest annual growth since 2020, when sales have decreased by 7%.
The downward revision attests to the deflationary pressure that weighs on the economy of the second world, where domestic demand has been affected by prolonged deceleration in real estate activity. During the first eight months of the year, Byd only reached 52% of its initial sales target of 5.5 million vehicles.
In the space of a few years, Byd has become one of the world’s largest car manufacturers by carrying out a large part of its internal production.
Its sales of 100% electric and rechargeable hybrids have multiplied by ten between 2020 and 2024, reaching 4.3 million vehicles. These actions place the group at the same level as General Motors and Ford in terms of world sales.
However, Byd today shows undeniable signs of deceleration, particularly in its main market, China, which represents almost 80% of its sales and is in the heart of a price war for several years. Therefore, the group puts a lot in its development in Europe, where Tesla exceeded in July.
Geely, a byd competitor, indicated its annual sales target for 2025 to 3 million vehicles, against 2.71 million, said its leaders at a conference on results in August.
Source: BFM TV
