BYD Sales Hit a New High in May
In May, BYD Co. sold 382,476 vehicles. This is the company’s best monthly performance in 2025 so far. Out of these, 376,930 were passenger cars. The figures also show that battery-powered electric vehicle (EV) sales reached 204,369 units. That number even beat plug-in hybrid sales, which stood at 172,561. It was only the second time this year that full EVs outsold hybrids.
BYD’s overseas sales also surged. The company shipped more than 89,000 vehicles abroad in May alone. That is the highest overseas delivery number BYD has ever achieved.
So far in 2025, BYD has sold 1.76 million vehicles. But to meet its yearly target of 5.5 million units, the company must now sell over half a million vehicles each month for the rest of the year. While May’s numbers show progress, the road ahead remains steep.
BYD Stock Drops Despite Strong Sales
Even with rising sales, BYD’s stock continued to fall. On Monday, shares dropped nearly 5% in Hong Kong. This came after a 15% plunge the week before. Investors seem worried about more than just sales numbers.
One big reason for the stock slide is growing concern from China’s government. Officials are paying closer attention to the price cuts that BYD and others have been offering. These discounts are helping push sales, but they are also making people nervous.
Reports over the weekend said China’s government does not like the ongoing “price war” in the electric car market. Officials are worried that companies are cutting prices too deeply, which might hurt long-term quality and the industry’s image.
Government and Media Sound the Alarm
The People’s Daily, a major government-backed newspaper, strongly criticized the current trend. It warned about what it called “rat-race competition.” The paper said selling low-quality cars at low prices could hurt the image of Chinese products worldwide.
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It did not name any companies, but the message was clear. The government wants carmakers to stop hurting each other just to win more customers. The Ministry of Industry and Information Technology also said it would act to stop bad competition. It plans to protect fair market order and make sure customer rights are not harmed.
China’s automobile industry group joined in. It warned that these price wars could hurt profits and reduce the quality of cars. The group stressed that this type of fierce competition is unhealthy for the entire industry.
BYD Leads the EV Price Battle
BYD started the latest round of price cuts at the end of May. In some cases, prices dropped by as much as 34%. Other companies quickly followed. These include Leapmotor and Geely Auto, two major rivals in China’s fast-growing EV sector.
The results were quick. Leapmotor saw a huge jump in sales, delivering 45,067 cars in May. That’s a 148% increase compared to last year. Geely Auto’s sales rose 46% to 235,208 units. Meanwhile, Xpeng’s sales tripled, thanks to its affordable MONA M03 model.
Analysts from Citigroup said BYD’s discounting boosted customer traffic to its stores. They estimate visits increased by up to 40% from the previous week. That shows deep discounts can bring in buyers fast, even if they hurt profit margins.
Despite this rush, many experts say such aggressive price cuts could lead to long-term problems. Companies may struggle to keep up with rising costs while offering cheaper prices. More importantly, product quality could drop, which would affect the global trust in Chinese electric vehicles.
