BYD recorded its seventh consecutive monthly decline in sales in March, reflecting the increasing competitive pressure in the world’s largest automotive market.
Sales decline, but pace slows
According to calculations based on data released by the company, the Chinese manufacturer sold 300,222 vehicles in March, a drop of 20.5% compared to the same period last year.
Despite the decline, the rate of decrease slowed compared to February, when the drop had reached 41.1%.
In the first quarter, BYD’s sales fell by about 30% year-on-year.
Competition intensifies pressure in the domestic market
The decline in sales is associated with increased competition in China, with brands like Geely and Leapmotor gaining ground in a highly competitive market.
This scenario led BYD to recently launch its first major battery update in six years, in an attempt to strengthen the competitiveness of its models.
Pricing strategy raises doubts
The new range, positioned above 150,000 yuan — a threshold considered critical in the Chinese market — raises uncertainties about its ability to attract consumers, at a time when demand is focused on more affordable models.
Margins under pressure
In addition to the drop in sales, BYD also saw its margins decrease in the last year, with annual profit falling for the first time in four years, coming in below expectations.
External markets compensate
Despite the difficulties in the domestic market, international sales continue to grow and represent a positive point for the brand.
In the first quarter, BYD sold 320,673 vehicles outside of China, accounting for 45.8% of the total.
The company remains confident in international growth and aims for an ambitious goal of 1.5 million vehicles sold abroad by 2026.
A turning point for the electric leader
The current phase highlights the challenges faced by BYD, even as it leads the electric vehicle segment.
With increasing competition and pressure on prices and margins, the ability to adapt will be crucial to maintaining its position in a rapidly transforming market.