BYD Shares Slide as July EV Sales Post First Decline in Six Months

BYD Co (SZ:002594) (HK:1211) shares fell on Monday after the world’s largest electric vehicle (EV) maker reported a sharp slowdown in July sales, fueling concerns over weakening growth momentum.

The Chinese automaker delivered 344,296 vehicles globally last month, up just 0.6% from a year earlier but down 10.1% from June, marking its first monthly drop in six months. The decline comes after a streak of double-digit growth in recent months, signaling potential headwinds in the competitive EV market.

Shenzhen-listed shares slid as much as 3.1% to 102.57 yuan following the announcement. The slowdown was most notable in plug-in hybrid sales, which plunged 22.6% year-on-year and continued to fall month-on-month.

Battery electric vehicles (BEVs) remained a bright spot on an annual basis, with sales climbing 36.8% to 177,887 units. However, BEV sales still fell 14% from June, underscoring fragile demand trends despite strong year-over-year gains.

The softening sales come as Chinese regulators move to tighten oversight of the EV industry. Draft amendments to the national pricing law, unveiled recently, aim to curb below-cost selling and improper algorithm-driven pricing practices to stabilize a market that has been overheated by aggressive competition.

BYD’s results highlight the challenges facing even the sector’s strongest players amid intensifying price wars, shifting consumer demand, and evolving regulatory pressures. Investors will be watching closely to see if the automaker can regain its sales momentum in the coming months as global EV competition heats up.