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Yahoo
3 days ago
- Automotive
- Yahoo
BYD Shares Sink as Carmaker Faces Backlash Over EV Price War
(Bloomberg) -- BYD Co. shares fell, bringing losses over the past week to more than 17%, on concern that its price cuts are drawing government scrutiny and becoming unsustainable for the Chinese EV industry. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Where the Wild Children's Museums Are The Economic Benefits of Paying Workers to Move Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania NYC Congestion Toll Brings In $216 Million in First Four Months In a commentary on Sunday, the People's Daily — the mouthpiece of China's Communist Party — criticized the 'rat-race competition' and warned that price wars can seriously affect supply-chain security. Low-priced and low-quality products would seriously damage the international reputation of 'Made-in-China,' it said, without naming any specific companies. Also over the weekend, China's automobile industry association warned against 'vicious competition' that would hurt profit margins, impair product quality and hinder the healthy development of the industry. The Ministry of Industry and Information Technology agreed with that stance and will step up measures to root out unhealthy competition in in the auto sector and protect market order and consumer rights, media outlet Cailian reported. BYD has led the bruising price war that's engulfed China's auto industry, hurting profit and clouding the outlook for the fast-growing sector that leads the rest of the world in electric vehicle technology. Even though BYD sold 382,476 vehicles in May, its best month yet for 2025, year-on-year growth of 15% was the slowest since August 2020, except for a drop in deliveries in February last year due to the Lunar New Year holiday. BYD was at the fore of the latest round of discounting, slashing prices as much as 34% last last month in a move that was followed by rivals including Zhejiang Leapmotor Technology Co. and Geely Automobile Holdings Ltd. Analysts at Citigroup estimated that after BYD's discounts, traffic to its dealerships may have surged between 30% to 40% week-on-week. So far this year, BYD has sold 1.76 million units against a full-year target of 5.5 million. Morgan Stanley analysts including Tim Hsiao estimate that sales would need to average about 534,000 units per month for the rest of 2025 to reach its goal. The fourth quarter is typically a strong one for all carmakers as they try to move stock before the end of the calendar year. The deep discounting appears to be helping other automakers boost sales. Leapmotor sold 45,067 vehicles in May, up 148% year-on-year, while Geely Auto's deliveries increased 46% to 235,208 units. Meanwhile Xpeng Inc. saw sales triple in May, driven largely by its mass-market MONA M03 model. Notably, BYD's battery passenger electric vehicle sales of 204,369 last month topped its plug-in hybrid sales of 172,561, only the second time pure EV sales have been in front since early 2024. The company is also ramping up overseas sales, delivering more than 89,000 units in May, its highest on record. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Will Small Business Owners Knock Down Trump's Mighty Tariffs? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Straits Times
4 days ago
- Automotive
- Straits Times
BYD faces growing backlash over EV price war as May sales jump
HONG KONG – BYD shares continued their plunge despite monthly sales climbing to the highest in 2025 as the steep discounts the industry uses to entice buyers draws scrutiny from Beijing. The electric car manufacturer sold 382,476 vehicles last month, including 376,930 passenger cars, according to a statement on June 1. While that marked a high point for 2025, the year-on-year growth of 15 per cent was the slowest since August 2020, except for a drop in deliveries in February 2024 that coincided with a broad slump due to the Lunar New Year holiday. Despite the sales boost, BYD stock dropped almost 5 per cent in Hong Kong on June 2, which follows a more than 15 per cent slump last week, after a series of reports over the weekend indicated the industry's lengthy price war has caught the attention of the government. In a commentary on June 1, the People's Daily – the mouthpiece of China's Communist Party – criticized the 'rat-race competition' and warned that price wars can seriously affect supply-chain security. Low-priced and low-quality products would seriously damage the international reputation of 'Made-in-China', it said, without naming any specific companies. Also over the weekend, China's automobile industry association warned against 'vicious competition' that would hurt profit margins, impair product quality and hinder the healthy development of the industry. The Ministry of Industry and Information Technology agreed with that stance and will step up measures to root out unhealthy competition in in the auto sector and protect market order and consumer rights, media outlet Cailian reported. BYD has led the bruising price war that's engulfed China's auto industry, hurting profit and clouding the outlook for the fast-growing sector that leads the rest of the world in EV technology. The latest round of discounting came late last month, when BYD cut prices as much as 34 per cent in a move that was followed by rivals including Zhejiang Leapmotor Technology and Geely Automobile Holdings. Leapmotor sold 45,067 vehicles in May, up 148 per cent year on year, while Geely Auto's deliveries increased 46 per cent to 235,208 units. Meanwhile Xpeng saw sales triple in May, driven largely by its mass-market MONA M03 model. Notably, BYD's battery passenger electric vehicle sales of 204,369 topped its plug-in hybrid sales of 172,561, only the second time pure EV sales have been in front since early 2024. The company is also ramping up overseas sales, delivering more than 89,000 units in May, its highest on record. Analysts at Citigroup estimated that after BYD's discounts, traffic to its dealerships may have surged between 30 per cent to 40 per cent week on week. So far this year, BYD has sold 1.76 million units against a full-year target of 5.5 million. Morgan Stanley analysts including Tim Hsiao estimate that sales would need to average about 534,000 units per month for the rest of 2025 to reach its goal. The fourth quarter is typically a strong one for all carmakers as they try to move stock before the end of the calendar year. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
4 days ago
- Automotive
- Business Times
BYD faces growing backlash over EV price war as May sales jump
[HONG KONG] BYD shares continued their plunge despite monthly sales climbing to the highest this year as the steep discounts the industry uses to entice buyers draws scrutiny from Beijing. The electric vehicle (EV) manufacturer sold 382,476 vehicles last month, including 376,930 passenger cars, according to a statement on Sunday (Jun 1). While that marked a high point for this year, the year-on-year growth of 15 per cent was the slowest since August 2020, except for a drop in deliveries in February last year that coincided with a broad slump due to the Chinese New Year holiday. Despite the sales boost, BYD stock dropped almost 5 per cent in Hong Kong, which follows a more than 15 per cent slump last week, after a series of reports over the weekend indicated the industry's lengthy price war has caught the attention of the government. In a commentary on Sunday, the People's Daily – the mouthpiece of China's Communist Party – criticised the 'rat-race competition' and warned that price wars can seriously affect supply-chain security. Low-priced and low-quality products would seriously damage the international reputation of 'Made-in-China', it said, without naming any specific companies. Also over the weekend, China's automobile industry association warned against 'vicious competition' that would hurt profit margins, impair product quality and hinder the healthy development of the industry. The Ministry of Industry and Information Technology agreed with that stance and will step up measures to root out unhealthy competition in in the auto sector and protect market order and consumer rights, media outlet Cailian reported. BYD has led the bruising price war that's engulfed China's auto industry, hurting profit and clouding the outlook for the fast-growing sector that leads the rest of the world in EV technology. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The latest round of discounting came late last month, when BYD cut prices as much as 34 per cent in a move that was followed by rivals including Zhejiang Leapmotor Technology and Geely Automobile Holdings. Leapmotor sold 45,067 vehicles in May, up 148 per cent year-on-year, while Geely Auto's deliveries increased 46 per cent to 235,208 units. Meanwhile, Xpeng saw sales triple in May, driven largely by its mass-market MONA M03 model. Notably, BYD's battery passenger EV sales of 204,369 topped its plug-in hybrid sales of 172,561, only the second time pure EV sales have been in front since early 2024. The company is also ramping up overseas sales, delivering more than 89,000 units in May, its highest on record. Analysts at Citigroup estimated that after BYD's discounts, traffic to its dealerships may have surged between 30 to 40 per cent week-on-week. So far this year, BYD has sold 1.76 million units against a full-year target of 5.5 million. Morgan Stanley analysts including Tim Hsiao estimate that sales would need to average about 534,000 units per month for the rest of 2025 to reach its goal. The fourth quarter is typically a strong one for all carmakers as they try to move stock before the end of the calendar year. BLOOMBERG
Mint
4 days ago
- Automotive
- Mint
BYD Faces Growing Backlash Over EV Price War as May Sales Jump
BYD Co. shares continued their plunge despite monthly sales climbing to the highest this year as the steep discounts the industry uses to entice buyers draws scrutiny from Beijing. The electric vehicle manufacturer sold 382,476 vehicles last month, including 376,930 passenger cars, according to a statement Sunday. While that marked a high point for this year, the year-on-year growth of 15% was the slowest since August 2020, except for a drop in deliveries in February last year that coincided with a broad slump due to the Lunar New Year holiday. Despite the sales boost, BYD stock dropped almost 5% in Hong Kong, which follows a more than 15% slump last week, after a series of reports over the weekend indicated the industry's lengthy price war has caught the attention of the government. In a commentary on Sunday, the People's Daily — the mouthpiece of China's Communist Party — criticized the 'rat-race competition' and warned that price wars can seriously affect supply-chain security. Low-priced and low-quality products would seriously damage the international reputation of 'Made-in-China', it said, without naming any specific companies. Also over the weekend, China's automobile industry association warned against 'vicious competition' that would hurt profit margins, impair product quality and hinder the healthy development of the industry. The Ministry of Industry and Information Technology agreed with that stance and will step up measures to root out unhealthy competition in in the auto sector and protect market order and consumer rights, media outlet Cailian reported. BYD has led the bruising price war that's engulfed China's auto industry, hurting profit and clouding the outlook for the fast-growing sector that leads the rest of the world in EV technology. The latest round of discounting came late last month, when BYD cut prices as much as 34% in a move that was followed by rivals including Zhejiang Leapmotor Technology Co. and Geely Automobile Holdings Ltd. Leapmotor sold 45,067 vehicles in May, up 148% year-on-year, while Geely Auto's deliveries increased 46% to 235,208 units. Meanwhile Xpeng Inc. saw sales triple in May, driven largely by its mass-market MONA M03 model. Notably, BYD's battery passenger electric vehicle sales of 204,369 topped its plug-in hybrid sales of 172,561, only the second time pure EV sales have been in front since early 2024. The company is also ramping up overseas sales, delivering more than 89,000 units in May, its highest on record. Analysts at Citigroup estimated that after BYD's discounts, traffic to its dealerships may have surged between 30% to 40% week-on-week. So far this year, BYD has sold 1.76 million units against a full-year target of 5.5 million. Morgan Stanley analysts including Tim Hsiao estimate that sales would need to average about 534,000 units per month for the rest of 2025 to reach its goal. The fourth quarter is typically a strong one for all carmakers as they try to move stock before the end of the calendar year. This article was generated from an automated news agency feed without modifications to text.
Time of India
22-05-2025
- Automotive
- Time of India
Xpeng forecasts upbeat quarterly revenue on strong EV deliveries
China's XPeng on Wednesday forecast second-quarter revenue above Wall Street estimates, betting on growing demand for its lower-priced electric vehicles . US-listed shares of the company rose 6.3 per cent in premarket trading. XPeng is one of the few automakers to weather China's hypercompetitive EV market, but is yet to turn a profit. In the first quarter, the company reported surging vehicle deliveries, improving gross margin and a narrower loss. 'Despite seasonality for auto sales, our quarterly deliveries hit a new historical high, making us the top-selling automaker among emerging EV companies,' CEO Xiaopeng He said. In August, the company had launched MONA M03, a mid-sized sedan that competes with BYD 's Seagull and Dolphin, as well as the higher-priced Tesla Model 3 . The Guangzhou-based company expects to deliver between 102,000 and 108,000 vehicles in the second quarter, which is about 237.7 per cent to 257.5 per cent higher than a year ago. XPeng forecast second-quarter revenue of 17.5 billion yuan to 18.7 billion yuan, the midpoint of which is above analysts' average estimate of 16.85 billion yuan, according to data compiled by LSEG. For the first quarter of 2025, Xpeng delivered 94,008 EVs, representing a 330.8 per cent increase compared with the same period last year. Gross margin stood at 15.6 per cent for the first quarter compared with 12.9 per cent from a year earlier. Last month, XPeng unveiled its upscale X9 minivan, starting at 359,800 yuan ($49,231), equipped with advanced automated-driving systems. The company also said it expects to achieve mass production of vehicles with Level 3 autonomous driving features in China by the end of 2025 - a significant step up from the Level 2 systems widely in use.
