BYD’s rapid rise hit a speed bump in July, reporting its first delivery decline of 2025 amid a fierce price war that is battering margins. The company delivered 341,000 vehicles, its a 10 % drop from June, snapping a long stretch of growth. This slowdown reflects the broader turbulence shaking China’s EV sector.
Aggressive price cuts in May slashed prices up to 34 % on key models. Competitors responded in kind, igniting an industry-wide battle that is squeezing profits. BYD’s reliance on deferred payments to suppliers has surged, with payables growing ninefold over five years. This has strained supplier relations and raised questions about sustainability.
Despite the challenges, BYD remains a global EV powerhouse, expanding its lineup and pushing into international markets, including Europe. Still, the current market dynamics force a reassessment. The rapid growth driven by subsidies and discounts is hitting limits. The EV boom’s overheated phase looks like it may be fading.
Investors and industry watchers now watch closely to see if BYD can navigate these headwinds and sustain leadership through fierce competition and tightening margins.
“BYD delivered 341,000 vehicles in July, down 10 % from June, marking its first sales decline of 2025”
https://www.cnbc.com/2025/08/04/chinas-byd-posts-first-delivery-dip-in-2025-as-ev-price-war-bites.html
“Price cuts of up to 34 % on 22 models intensified an industry-wide pricing battle”
https://www.cnbc.com/2025/08/04/chinas-byd-posts-first-delivery-dip-in-2025-as-ev-price-war-bites.html
“Payables have surged ninefold over the past five years, raising concerns over BYD’s supply chain practices”
https://www.wsj.com/business/autos/how-chinas-byd-is-squeezing-suppliers-in-the-ev-price-war-2c70ee82
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