BYD reportedly outsold fellow EV giant Tesla in Europe whilst its stock prices plummeted by 8.6 per cent and 4 per cent on the Hong Kong Stock Exchange. The tumble was attributed to BYD’s latest promotional discounts for their Dynasty and Ocean series of vehicles.
Last Friday, 23 May, BYD offered limited discounts for 22 models to help clear out rapidly growing inventories at dealerships. Upon their analysis, financial institution DeustcheBank said: “According to our dealer checks, BYD’s dealer-level inventory is currently at 3-4 months, likely the maximum level that the dealers can bear.”
Until 30 June, the Seagull will be priced at RMB 55,800 (AUD 12,030.71) from RMB 68,900 (AUD 14,855.12), including trade-in subsidies. Meanwhile, the Dynasty series’ Qin Plus DM-i is being sold for RMB 63,800 (AUD 13,743.30) from RMB 79,800 (AUD 17,189.89).
BYD’s large inventory is due to its ambitious sales goal to sell 5.5 million units by the end of the year, 30 per cent higher than its 2024 sales.
GLOBAL AMBITIONS
BYD is targeting half of its total vehicle sales to come from international markets by the year 2030. On top of being one of China’s leading automotive manufacturers, the company aims to become a top-selling vehicle brand globally.
According to Reuters, BYD’s growth could be largely helped by an expansion towards European and Latin American markets. Due to challenging trade conditions set by the USA, a breakthrough in North America might not be as advantageous. The company is taking a conservative approach to its US market and is opting not to sell passenger vehicles in the country.
Strong sales in Europe led the Chinese EV maker to overtake its rival, Tesla. BYD recorded 7,231 units sold in the region, 169 per cent up from last year. Meanwhile, Tesla did not fare as well as its Chinese counterpart with Euro News attributing this to a negative perception of CEO Elon Musk and his involvement in American politics.
Nevertheless, BYD reported almost 1 million units sold globally in the first quarter of the year. Considering the company’s current pace, it may reach its year-end sales goal of 5.5 million units sold.
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