BYD: a maturity crisis in China?

In August, BYD reduced its production for the second consecutive month, a first since 2020. The Chinese manufacturer produced 353,090 electric and plug-in hybrid vehicles, down 3.78% year-on-year.

This contraction confirms a strategic slowdown after years of rapid expansion. BYD is reducing production rates at some of its factories and scaling back its ambitions for ramping up production. Sales in China (which account for 80% of its business) fell by 14.3% in August for the fourth consecutive month of decline. The group has only achieved 52.1% of its annual target, which several analysts now consider unrealistic.

The contrasting performances of PHEVs and 100% electric vehicles are clouding the trajectory. Since April, PHEV sales have been falling while EV sales have been rising (+34.4% in August), signaling a technological shift.

​

In Europe BYD's sales have exceded those of Tesla, which is losing momentum, for the first time

After its first quarterly profit decline in three and a half years, BYD is undergoing a period of consolidation. Its expansion in Europe is accelerating, particularly in relation to Tesla, but the main focus remains on China, where the market remains under pressure.