BYD Shares Slide as October EV Sales Decline Amid Rising Competition

Shares of BYD Co. (HK:1211) dropped 3% on Monday after the Chinese electric vehicle giant reported a decline in October new energy vehicle (NEV) sales, signaling growing pressure from intensifying competition in China’s EV market.

According to a company filing, BYD sold 441,706 NEVs in October, a 12% year-on-year decline from 502,657 units in the same period last year. The downturn was largely driven by a sharp drop in plug-in hybrid sales, which plunged nearly 31%, while pure battery-electric vehicle (BEV) sales rose 15%, reaching 222,559 units.

As of 04:55 GMT, BYD’s Hong Kong-listed shares were trading at HK$97.65, reflecting investor concerns about slowing demand and mounting market competition.

The company’s total vehicle production also fell to 429,808 units, compared with 536,134 units in 2024. Despite the overall slowdown, BYD’s exports remained robust, with 83,904 NEVs shipped overseas during October. Additionally, battery installations totaled approximately 27.4 gigawatt-hours, underscoring the automaker’s continued strength in EV battery production.

BYD has long dominated China’s fast-growing EV sector, benefiting from strong domestic demand and government support. However, the recent dip in sales highlights the increasing competition from rivals such as Tesla, NIO, and Li Auto, as well as the impact of aggressive pricing strategies across the industry.

Analysts suggest that the company may face challenges maintaining its growth momentum as consumer demand stabilizes and price wars intensify. Nevertheless, BYD’s expanding export operations and innovation in battery technology could help cushion the effects of domestic market saturation.