Chinese electric vehicle (EV) maker BYD Co (比亞迪) has slashed its full-year sales target as intense competition in its home market hurts its bottomline.
The world’s biggest seller of EVs now plans to deliver 4.6 million units this year, down 16 percent from its previous expectation for 5.5 million, Reuters reported yesterday, citing people it didn’t identify. BYD didn’t comment on the report.
The company may sell 4.5 million units this year, according to estimates compiled by Bloomberg.
Photo: Ng Han Guan, AP
The revision shows that not even dominant players are safe in China’s cutthroat market. Shenzhen-based BYD reported a shock 30 percent drop in quarterly profit last week, its first decline in over three years, while deliveries for July and last month are largely flat from the same time last year as attractively priced mass-market models from domestic rivals win over consumers.
The carmaker has also been buffeted by Beijing’s crackdown on the aggressive discounting that has helped it eke out market share in recent years.
BYD is now entering the peak sales season this month and next month without merely relying on discounts and trying to fend off rivals that are offering sleek, technology-focused models at similar price points.
The carmaker is still by far China’s most popular EV brand. But affordable, technology-focused models launched by the likes of Geely Automobile Holdings Ltd (吉利控股) and Xpeng Inc (小鵬) are chipping away at its dominance. Meanwhile, new entrant Xiaomi Corp’s (小米) electric SU7 sedan and YU7 sport utility vehicle have proven unexpectedly popular.
Still, BYD seems to be increasingly turning its attention outside of China, noting that higher profitability there has made its overseas business a key driver for continued growth. The brand has made major inroads in markets like Brazil, Australia, Singapore and parts of Europe. Overseas revenue, excluding Hong Kong, Macau and Taiwan, was up 50 percent in the first six months versus the same period a year ago.
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