BYD Co. The shares of Chinese electric cars in Hong Kong on Monday, when investors charged the 34 % Auto Giann cuts at late last week.
The shares of the number 1 brand in China decreased to 8.3 %, while their peers fell to Li Auto Inc, Wall Wall Motor, and Geely Automobile Holdings Ltd. More than 5 % amid the investor concern about intensifying competition in this sector.
BYD presented discounts on 22 of its electrical models and the hybrid components it sells in China until the end of June, with war tips at the renewed sector level. While EV sales in general reached new annual levels, it was growthSlow.
To start the slow demand for consumers – it has worsened due to the feeling of the broader economic distress in China – auto companies in the largest car market in the world have reduced stickers. However, the stock levels in the agents last month reached 3.5 million cars, or 57 days in the stock, which is the highest level since December 2023, according to the data shared by the Passenger Cars Association in China last week.
The BYD reviews include the segull hatchback price to 55800 yuan ($ 7,780), which is a 20 % reduction to a model that was already the cheapest and games of automobile maker that got global interest at its sub-price-$ 10,000. The Seal Dual-Motor Hybrid sedan has seen the 34 % largest price reduction, or 53,000 yuan to 102,800 yuan.
In recent months, BYD has tried to remove old models inventory, including those that are not preferred with the features of helping the new driver – that auto industryDeclareIn February it will add to its models for free. The axis was not without problemsStruggle to harm the struggleThe agents are to work with.
“While some of these discounts have existed since April, the official announcement sends a strong signal to the difficulty of the final market,” wrote the Morgan Stanley analysts, including Tim Hsiao, in a note.
The latest BYD discounts is expected to have a major impact, as competing car manufacturers increase their prices, which leads to a deepening in already thin margins. Intensive pricing pressure condemns many lower lines of the auto company, which leads to the escalation of financial losses and the unification of the industry.
“We expect their peers to follow up on the price reduction,” noting that ChongQuing Changan Automobile Co. She announced a cash discount of 25,000 yuan for the deep S07 model during the weekend while Zhejiang Leapmotor Technologies Ltd.
CITI estimated that after weekend discounts, the BYD agency traffic may have increased between 30 % to 40 % per week.
If this traffic translate into sales, the BYD sizes can maintain its upward path. The Group -based group has published its headquartersThe best month of sales until 2025In April, another sign that despite the wider industry pain, it reaches its goal in the full year of 5.5 million deliveries.
BYD also acquires a floor outside. He – sheSelling more EVS in EuropeFrom Tesla Inc. For the first time last month, the American brand, which has long led EV on the continent, exceeded.
Thanks to the vertical integrated supply chain of BYD – it makes its own batteries and many semiconductors – and the local scale, which helps reduce production costs and the impact of car price wars in China on its public budget more than some other auto industry companies.
Its total margin for the quarter ended on March 31 was about 20 % compared to about 16 % for Tesla, for example. And entered the pure byd inThe first quarterHe jumped to 9.15 billion yuan, exceeding Tesla on another key scale.
This story was originally shown on Fortune.com
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