BYD, China’s largest electric vehicle manufacturer, recorded its first monthly sales decline this year, affected by intensifying market competition due to a price war that has raised concerns among Beijing policymakers.
While other major companies like Li Auto and Nio reported drops in July deliveries, XPeng achieved record performance, alongside positive indicators from companies such as Xiaomi, Leap Motor, and Aito, which saw monthly sales growth.
BYD delivered 341,030 units in July, down from 377,628 units in June, marking its first monthly decline since the beginning of the year. However, its figures remained relatively stable compared to the same period last year. This follows months of steady growth since delivering 296,446 units in January.
The company had introduced discounts of around 30% in May on several of its low-cost electric and hybrid models, prompting competitors to take similar steps. This intensified the price war, leading Chinese authorities to warn against “excessive competition” in the market.
Sharp Declines for Li Auto and Nio
Li Auto delivered 30,731 units in July, down from 36,279 units in June, a sharp year-on-year decline of 39.7%. This marks its second consecutive drop and the steepest among major Chinese EV makers.
Nio delivered 21,017 units, down from 24,925 units in June, which had been its annual peak. Year-on-year, deliveries fell by 2.7%, with performance declining across all three of its production lines.
Both companies launched new models on July 31. Li Auto unveiled its first all-electric sports car, the Li i8, available in three variants priced between 321,800 and 369,800 yuan ($44,700–$51,400), with deliveries starting August 20.
Meanwhile, Nio introduced its new multi-purpose sports vehicle, the L90, priced at 265,800 yuan, or 179,800 yuan with a battery subscription. Deliveries of the six-seat version began August 1, while the seven-seat version is expected in late September.
Competitors Achieve Record Growth
Xiaomi delivered over 30,000 units in July, up from 25,000 in June, marking its best monthly performance since March, following the launch of its YU7 sports car in early July.
XPeng continued its growth streak, delivering 36,717 units in July, a slight increase from June, marking its ninth consecutive month exceeding 30,000 deliveries. The company announced the launch of the second-generation Xiaopeng P7 in China on August 6.
Meanwhile, the Harmony Smart Mobility Alliance, backed by Chinese tech giant Huawei and including brands like Aito, Chery, and Maxstro, reported 47,752 deliveries in July, mostly from Aito’s Wenjie series, which accounted for 40,753 vehicles.
Leap Motor, supported by European group Stellantis, delivered 50,129 units in July, its highest monthly figure to date, reflecting steady upward momentum.
In contrast, Zeekr, a subsidiary of Geely Group, saw nearly unchanged performance, delivering 16,977 vehicles, roughly matching its June numbers.
