BYD Co. is experiencing stagnating monthly sales, exacerbated by China's seasonal slowdown in consumer purchases. The company faces increased scrutiny from Beijing, which aims to curb irrational competition in the electric vehicle sector. Analysts doubt BYD's ability to achieve its annual sales target of 5.5 million units for 2025, with many downgrading their estimates. Deutsche Bank now projects 5 million wholesales for this year, while Morgan Stanley has lowered its estimate to 5.3 million, citing the limited introduction of new models. Maintaining discounts is seen as crucial for BYD's competitiveness.
BYD's monthly sales have stagnated, and with typically slower summer months, a reversal in this trend is not anticipated. The company may undershoot its 2025 sales target.
China has vowed to reduce irrational competition in the electric vehicle sector to prevent deflationary price wars that could harm the economy and industry.
Analysts doubt BYD will reach its 5.5 million units sales target for 2025, with several firms revising their wholesale delivery estimates downwards.
To remain competitive, BYD may have to prioritize maintaining discounts in the latter half of the year, while also facing regulatory scrutiny on price reductions.
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