South Korean media: BYD has cut its sales target by nearly 1 million units this year!
On October 4, South Korean media "Global Economy" published an article stating that China's leading electric vehicle company BYD has reduced its sales target for this year from 5.5 million to 4.6 million, marking the slowest growth in five years.
BYD stated in March this year that its sales target was 5.5 million, but it has repeatedly reduced the target since then, with the latest determined target being 4.6 million. This means a reduction of as much as 16%, mainly due to intensified competition with competitors such as Geely and Leap Motor.
BYD's profit in the second quarter fell sharply by 30% year-on-year, marking the first decline in over three years. Wall Street analysts are also lowering their forecasts. Deutsche Bank expects BYD's car sales this year to be 4.7 million, while Morningstar predicts 4.8 million.
The revised target represents only a 7% increase compared to last year, which is expected to mark the lowest growth rate since a 7% decline in sales in 2020. In the first eight months of this year, BYD achieved only 52% of its original target.
BYD's sales of pure electric vehicles and plug-in hybrid vehicles have grown tenfold from 2020 to 2024, reaching 4.3 million, comparable to General Motors and Ford, but facing intense price wars in the Chinese market, which accounts for nearly 80% of its sales.
Notably, in the domestic market, which is the core of BYD, the sales of economical sedans priced below 150,000 RMB declined by 9.6% in July. On the other hand, competitor Geely stated in its quarterly performance report that its sales target for this year has been raised from the original 2.71 million to 3 million.
Original article: www.toutiao.com/article/1845054290750472/
Statement: The article represents the views of the author.