China’s automaker BYD is experiencing a slowdown in monthly sales. This raises concerns about its ability to meet the 2025 sales target of 5.5 million vehicles.

Analysts are growing doubtful that BYD can meet its annual sales target of $5.5$ million units for 2025.

To reach its target, BYD would need to sell 560,000 electric and hybrid vehicles each month through December.

The company’s highest monthly sales occurred in December 2024, with just under 515,000 units sold. In the domestic market, BYD’s share is declining as competitors like Geely and Xpeng gain market presence.

In June, BYD’s core car deliveries in China fell 8% year-on-year, according to HSBC data. Internationally, BYD’s sales are performing better, having met 60% of its 800,000-unit overseas sales goal.

However, it faces challenges in markets such as Saudi Arabia, India, and Europe. Low EV adoption rates, tariffs, and competition from established automakers hinder growth.

The company is under regulatory scrutiny in China due to aggressive price cuts amid an ongoing EV price war. In late May, BYD reduced prices by up to 34%, which drew criticism from state media.

🔗 Source: Bloomberg

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