BYD (HKG: 1211, OTCMKTS: BYDDY) experienced a decline in sales in January, attributed to seasonal factors that impact other electric vehicle (EV) manufacturers as well. The company sold 300,538 new energy vehicles (NEVs) last month, marking a 49.16 percent increase from the previous year but a significant drop of 41.62 percent from December’s figures, as reported in the latest data release.
The automotive market in China is known for its seasonal fluctuations, with the beginning of the year typically representing a low point in sales, especially during months that coincide with the Chinese New Year holiday. This year, the holiday period spanned from January 28 to February 4, contributing to the overall decrease in sales for BYD and other EV companies.
In a strategic shift, BYD discontinued the production and sale of vehicles powered solely by internal combustion engines in March 2022. Instead, the company now focuses on manufacturing plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).
BYD’s NEV sales comprise both passenger cars and commercial vehicles, with passenger NEVs accounting for 296,446 units sold in January. Despite a 47.47 percent year-on-year increase, sales were down by 41.81 percent compared to the previous month. Additionally, the company sold 4,092 units of commercial NEVs, marking a substantial 763.29 percent growth from the previous year but a 23.78 percent decline from December.
The breakdown of passenger NEVs sold by BYD in January includes 125,377 units of BEVs, reflecting a 19.06 percent increase year-on-year but a 39.65 percent decrease from December. Meanwhile, sales of passenger PHEVs reached 171,069 units, representing a 78.73 percent year-on-year growth but a 43.30 percent decline compared to the previous month.
Despite the overall decline in sales, BYD’s performance in overseas markets was a bright spot. The company achieved record-high sales of 66,336 passenger NEVs in international markets in January, showing an impressive 83.38 percent year-on-year increase and a 16.07 percent rise from December.
As China’s leading NEV manufacturer, BYD also holds the position of the country’s second-largest power battery maker. In January, the company’s power and energy storage battery installations amounted to approximately 15.511 GWh, marking a 37.16 percent year-on-year increase but a 33.98 percent decline from December.
Looking ahead, JP Morgan predicts that BYD could reach 6 million global deliveries by 2026, underscoring the company’s growth potential and market presence in the EV industry. As BYD continues to innovate and expand its product offerings, it remains a key player in the transition towards sustainable transportation solutions.
