BYD June sales rise 10% after price cuts

BYD Co., a Chinese automaker, achieved its highest monthly car sales of 2025 in June, selling 377,628 vehicles.

This total includes 206,884 passenger battery electric cars and represents a 10% increase compared to June 2024.

The company’s total sales for the first half of 2025 reached 2.1 million units, according to a company statement released on July 1, 2025.

BYD implemented price cuts of up to 34% across certain models in late May to boost sales. However, the move met with mixed results.

While the discounts coincided with record sales, investor concerns over profit margins led to a US$20 billion decline in the company’s market value.

In response to regulatory pressure in China, BYD has ended some discounts. The company has also joined an industry-wide commitment to standardize supplier payment terms to 60 days, following scrutiny over the use of supply chain financing.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ China’s EV price wars spark unprecedented government intervention

BYD’s aggressive discounting strategy (up to 34% across models) ignited a much broader price war that has drawn rare direct criticism from Chinese authorities.

The People’s Daily, China’s official state newspaper, explicitly condemned the “rat-race competition” in the auto industry, warning that price wars could damage the reputation of “Made-in-China” products1.

This government intervention came after industry analysis revealed cumulative retail losses reaching 177.6 billion yuan ($24.7 billion) in 2024, with over 60 vehicle models experiencing price cuts in early 20252.

The Ministry of Industry and Information Technology has pledged to implement specific measures to curb unhealthy competition, signaling unusually direct market interference1.

China’s government appears particularly concerned about the impact on the broader automotive ecosystem, with the China Iron and Steel Association criticizing automakers for engaging in pricing that adversely affects upstream suppliers2.

The standardization of supplier payment terms to 60 days demonstrates how regulators are actively reshaping industry practices beyond simple price controls.