BYD Loses Ground to Competitors in China’s EV Market

BYD Co., China's leading electric vehicle manufacturer, is facing mounting pressure as smaller rivals gain traction in the domestic market. The company reported a sharp decline in profits, unsettling investors and signaling challenges ahead. August sales grew a mere 0.1% year-on-year, a stark contrast to competitors like Geely Automobile Holdings, which saw a 38% surge, and Leapmotor Technology Co. and Nio Inc., both achieving record deliveries.

BYD's previous market dominance relied heavily on aggressive discounting, a strategy now under scrutiny as Beijing discourages price wars to stabilize the industry. Domestic sales fell nearly 15% in August, with market share dipping to 14.4% in July. Despite maintaining a significant lead in overall deliveries—2.9 million vehicles year-to-date, dwarfing Xpeng and Li Auto—the company's momentum appears to be waning.