SHENZHEN: BYD Co Ltd’s vehicle sales rose 22% in July year-on-year, kicking off a crucial second half (2H) where it needs to sharply lift shipments to meet its annual deliveries target.
The automaker sold about 420,000 cars in total last month, figures released on Saturday showed. It is already falling behind the pace needed to meet its annual sales goal.
After selling 1.81 million vehicles in the 1H, the company needs to average about 530,000 a month for the rest of the year to reach the lower end of its five million to 5.5 million goal. The figures underscore the challenge facing chief executive officer Wang Chuanfu after a difficult 1H in which BYD idled assembly lines to prepare for upgraded batteries.
The July sales continue an established pattern this year where exports – 43% of total – have grown strongly as the company pushes aggressively into markets from South America and Europe.
In contrast, domestic demand is struggling under the weight of a sluggish economy and intensifying competition.
Investors are closely watching the export mix to assess BYD’s resilience against hardening trade barriers and tariffs in some global markets.
Its international profile is being bolstered by a slew of new models, including right-hand-drive rollouts of the hybrid tech in the Seal 6 series and a refreshed European electric Seal lineup. — Bloomberg
