BYD’s delivery growth stalls amid intense EV price war

China’s largest electric vehicle (EV) maker, BYD, has reported its first monthly delivery decline of 2025, signaling a potential slowdown for the company amid an escalating price war in the EV market. The company shipped 341,030 vehicles in July, down from 377,628 in June. This marks a nearly flat year-over-year performance, which is a stark contrast to its steady growth earlier in the year. BYD's drop in deliveries follows its decision to slash prices on several hybrid and battery-only models by approximately 30 per cent in May. The move, aimed at increasing affordability, has triggered a broader price-cutting trend across the industry. However, policymakers in Beijing have expressed concern about the price war’s impact on market stability, prompting calls to halt the excessive competition.

Li Auto and Nio report declines, Xpeng and Xiaomi shine

The price war has also affected other major Chinese EV makers. Li Auto saw a significant drop in deliveries, reporting only 30,731 units in July, down 39.7 per cent year-over-year. Nio’s deliveries also fell to 21,017 units, down from 24,925 in June, reflecting a slight 2.7 per cent year-on-year decline. However, other companies have posted strong growth.

Xpeng, continuing its momentum, delivered a record 36,717 units in July, marking its ninth consecutive month with over 30,000 units sold. Xiaomi also posted notable growth, delivering over 30,000 vehicles in July, up from 25,000 in June. Both companies are seeing increased consumer demand, driven by new model launches and strong market positioning. Leapmotor, backed by Stellantis, also hit a milestone by delivering 50,129 vehicles, its highest monthly sales to date. The Harmony Intelligent Mobility Alliance, supported by Huawei, delivered 47,752 units, with the bulk of sales coming from Aito’s Wenjie series, which accounted for 40,753 cars.

BYD faces pressure as competition intensifies

BYD’s recent decline in deliveries is coupled with a dip in its stock price, falling nearly 1 per cent in China following the report. The company’s shares have dropped 15 per cent in 2025, contrasting with a 28.6 per cent rise in its US-listed shares. This underlines the pressure BYD is facing domestically, where fierce competition and falling prices are squeezing margins. Despite the challenges, BYD’s international presence remains a strong growth driver, and discussions with India’s Adani Group for a potential battery production joint venture signal that the company is looking beyond the domestic market for future expansion.