BYD, a leading Chinese EV maker, reported strong sales in July. This boosted its shares in overseas markets, as exports helped make up for weaker sales at home and gave the company an edge over rivals like Tesla.
In July, BYD sold 411,072 passenger vehicles, a 21% increase from last year. Of these, 233,015 were fully electric, up 31%. The company also exported a record 180,538 vehicles, about 125% more than a year ago.
BYD’s domestic sales were weaker, with about 239,000 vehicles sold in China, including commercial vehicles. This was a 22% drop from last year, as growth slowed and competition increased. Exports have become more important for BYD, but this trend has made it harder for European carmakers to stay profitable as they compete for the same overseas buyers.
On Monday, BYD shares rose 0.8% in overseas trading. The stock is now down less than 1% for the year.
Other companies in the sector had mixed results. XPeng delivered 38,027 vehicles in July, up 4% from last year, but its shares dropped more than 3% as investors worried about a bigger year-to-date decline. XPeng’s total deliveries through July were down 13% from a year ago. Li Auto delivered 30,468 vehicles last month, about the same as last year, but its shares also fell nearly 3%. U.S.-listed shares of Li Auto are down sharply for the year, with total deliveries through July down 5%. NIO delivered 35,934 vehicles in July, a 71% increase from last year. This helped its shares perform better than others, with only a small decline on Monday. NIO’s total deliveries through July were up 68% year over year, and its stock is only slightly lower for the year.
NIO’s better results are partly due to new model launches. However, the overall slowdown in China’s auto market is still a challenge for all companies, including Tesla, which gets about 20% of its sales from China. According to the China Passenger Car Association, Tesla sold about 239,000 vehicles in China through June, down 9% from last year. Tesla does not release regional or monthly sales numbers directly.
Tesla shares are still down more than 30% for the year as of Monday. China is just one of several challenges for the stock, along with investor calls for more progress on AI projects like robotaxis. Shares rose slightly in early trading Monday, matching gains in the wider market.
