BYD shares fall to nine-month low as sales decline 12%

BYD shares neared their lowest level in nearly nine months after the company reported a second straight drop in monthly sales and lost its position as China’s top-selling auto brand.

The Shenzhen-based EV maker posted a 12% year-on-year drop in October sales to 441,706 vehicles.

BYD’s stock fell 1.9% to HK$98.70 (US$12.70) in early Hong Kong trading, putting it about 36% below its late May peak.

BYD was overtaken by SAIC Motor, which shipped 453,978 vehicles in October.

Analysts say BYD will need to deliver 450,000 vehicles per month in November and December to reach its annual shipment goal of 4.6 million units, with sales for the year so far at 3.7 million.

Other Chinese automakers such as Geely, Nio, Xpeng, and Leapmotor saw record sales in October, while Xiaomi reported another strong month, and Li Auto reported its fifth consecutive monthly drop.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

BYD margins fall while inventory climbs, profits stay under strain

Q3 gross margin dropped to 17.61%, down 6.13 percentage points year over year. Inventory jumped 31.83% from end-2024 to RMB 152.973 billion. Price cuts keep profits under pressure 1 2.
Net income excluding non-recurring items fell 36.65% in Q3, worse than the 32.6% headline drop. BYD ran multiple promotions from March to June that lifted short-term sales but cut margins 2.
EV discounts in China averaged a record 16.8% in April 2025, double the 8.3% average in 2024. Vehicle margins across the industry slid to 10% from 20% four years ago, so even a leader like BYD faces long-run price pressure 3.

Ad-tech and auto marketplaces stand to win as original equipment manufacturers (OEMs) stretch year-end promos

Chinese e-commerce platforms lengthened Double 11 campaigns in 2025. JD.com ran 37 days, while Kuaishou started on October 7. Longer windows usually spur auto brands to lift digital ad spend 4 5.
BYD targets 4.6 million units in 2025 with 3.7 million delivered year to date. Hitting the goal needs a faster Q4 pace, which likely pushes bigger budgets to Douyin, plus other live-commerce or ad-tech vendors during these festivals 2.
Third-party auto marketplaces and fintech lenders can pitch not only to BYD but also to peers. Many Chinese New Energy Vehicle (NEV) makers posted record October sales and may keep spending on promos 6.