The Shenzhen-based, Chinese automaker BYD Co’s BYDD Fall-electric vehicle sales more than doubled in July and the company sold more vehicles than the combined delivery numbers of the three homegrown newcomersNio IncNIO,Xpeng IncXPEV 0.01%, andLi AutoNASDAQLiduring the month.
What Happened: Berkshire Hathaway Inc(NYSE:BRK-A) (NYSE:BRK-B) Chairman Warren Buffett-backed BYD sold 24,996 battery-powered electric vehicles in July, a 139% jump year-on-year. On a sequential basis, the growth was 23%.
BYD’s electric vehicle sales volume in July edged past the combined delivery numbers of the upcoming Chinese rivals Nio, Xpeng and Li’s combined sales by a whisker at 24,560 electric vehicles.
Nio delivered 7,931 vehicles in July, while rival Xpeng delivered 8,040 vehicles and Li Auto reported 8,589 deliveries during the month.
BYD’s new energy vehicles sales more than tripled to 50,492 vehicles in July from a year ago.
In the New Energy Vehicle (NEV) category, which includes hybrids, BYD sales more than tripled to 50,492 vehicles in July, or a year-on-year jump of nearly 234.4%.
In China, NEV is used to define plug-in electric vehicles eligible for public subsidies which also includes plug-in hybrid electric vehicles and fuel cell electric vehicles besides the battery electric vehicles (BEVs).
These could be cars, buses, trucks, or two-wheelers. BYD’s NEV portfolio consists of cars, buses, and trucks. The automaker’s battery-powered electric vehicle sales is the metric most-suited for like-to-like comparison with Chinese peers and alsoTeslaIncTSLA.
Gas-powered Sales Drop: Interestingly, BYD's sales of oil-guzzling vehicles fell 57.5% to 6,918 vehicles in July. The decline was led by a sharp drop in oil-fueled SUVs where sales fell 65.3% to 4,556 vehicles.
Why It Matters: Nio delivered 7,931 vehicles in July, while rival Xpeng delivered 8,040 vehicles and Li Auto reported 8,589 deliveries during the month.
BYD’s sales jump comes amid stiff competition from the local newcomers as well as Tesla which has been ramping up investment plans in China.
The upcoming rivals have been going all the way to grab market share. For instance, Nio, which is on the threshold of entering the European market, has partnered with chipmakerNVIDIACorpNVDAfor autonomous driving capabilities. Others are planning similar feats and expansion plans.
Price Action: BYD shares closed 1.27% higher at $35.90 on Thursday.