Hey friends, the latest news has come out that BYD sales, a Chinese EV company, has recorded its highest monthly sales numbers in May 2025, but even after this, the company's shares are falling. The biggest reason for this is BYD's aggressive pricing strategy, which the Chinese government is now closely monitoring.
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BYD Sales of Record But Stock Crashes.
BYD sold a total of 382,476 vehicles in May, out of which 376,930 were passenger cars. This is the biggest BYD sales figure for 2025 so far, but year-on-year growth was just 15% – the slowest pace since August 2020 (excluding the February 2024 Lunar New Year slump).
Despite BYD’s strong sales, BYD shares in the Hong Kong market have fallen by almost 5%. This decline follows a 15% slump last week, when some reports over the weekend showed that China’s EV sector’s price war is now on the government’s radar.
Government Intervention and Criticism.
People’s Daily – the official newspaper of the Communist Party – criticized the “rat-race competition” in an editorial on Sunday. They said that this price war could pose a threat to supply chain security. Exporting such low-cost and low-quality products could damage the global image of “Made in China”.
This weekend, China’s Automobile Industry Association also warned that this “vicious competition” will not only hurt profit margins but will also be harmful to product quality and overall industry development.
The Ministry of Industry and Information Technology (MIIT) also agrees with this viewpoint and says it will take action against unhealthy competition in the auto sector and protect consumer rights along with market order.
BYD Sales & EV Price War 2025: Who Adopted What Strategy?
BYD has led this EV price war, in which it has reduced the price of many of its models by up to 34%. Its immediate impact is also visible – rivals such as Zhejiang Leapmotor Technology and Geely Automobile Holdings Ltd. have also announced similar price cuts.
- Leapmotor sold 45,067 vehicles in May, up 148% from the previous year.
- Geely Auto sold 235,208 units, a 46% increase.
- Xpeng Inc. also grew rapidly, with its MONA M03 model being the most popular and successful. Its sales also tripled.
BYD Sales of Pure EVs vs Plug-in Hybrids: Which is Becoming the Favorite?
Another interesting trend is that BYD’s battery electric vehicle (BEV) sales – 204,369 units – have outpaced plug-in hybrid sales – 172,561 units. This is only the second time pure EVs have beaten hybrids since the start of 2024.
BYD has also seen rapid growth in the international market–in May, they delivered 89,000+ vehicles in overseas markets, the company’s highest-ever monthly export record.
Impact of Discounts on BYD Sales in May 2025: Did Footfall Increase or Profit Fall?
According to Citigroup analysts, BYD has seen a weekly jump of 30%–40% in traffic at its dealerships after the price cuts. But selling cheaper than cost means a reduction in profit margins, which is a threat to long-term sustainability.
2025 BYD Sales Target: Will BYD be Able to Achieve Its Goal?
BYD has set its full-year sales target of 5.5 million units for 2025. So far, it has sold 1.76 million vehicles in the market. According to estimates by Morgan Stanley analysts such as Tim Hsiao, BYD will now have to sell about 534,000 vehicles per month to achieve this target. The fourth quarter is traditionally strong, as automakers try to clear inventory at the end of the year.
Aashrit Tiwari is an experienced automobile content creator with over 2 years of dedicated writing in the cars niche. His passion for cars stems from early exposure to high-end vehicles at home, translating into deep hands-on knowledge and real-world insight. At Accelon Motors, he shares automobile & cars news, expert reviews, latest updates, and analysis trusted by readers across India. His consistent research and on-ground experience make him a credible voice in the automotive blogging space.