Chinese automaker BYD has reportedly cut its annual sales target by 16.4% from 5.5 million to 4.6 million vehicles, as production declined for a second straight month in August.
According to a report by Reuters, which cited two people familiar with the matter, the latest guidance was shared with both employees and select suppliers last month.
However, it could still change depending on market conditions.
Despite the 16% reduction, the new target still represents a 7% sales growth from last year’s total — the slowest annual growth since 2020.
It is also below several analysts forecasts — Deutsche Bank expects BYD to sell 4.7 million vehicles in 2025, while Chicago-based firm Morningstar estimates 4.8 million.
While the sources did not specify a reason for the target being slashed, one of them told the outlet that BYD is facing increased competition from other Chinese rivals, citing Geely Auto and Leapmotor.
Geely Auto includes the Galaxy brand and the subsidiary Zeekr Group, the latter of which encompasses both the premium Zeekr brand and Lynk & Co.
The company sold 250,167 vehicles in August, its second-highest monthly sales on record — with only January’s 266,737 units above the numbers. The Galaxy brand represented 110,666 units — up 172.6% year over year.
The company operates under Geely Holding Group, which also backs international brands, such as Volvo Cars and Polestar, among others.
Leapmotor, which is backed by Stellantis Group, said earlier this week it delivered a record 57,066 vehicles in August and a total of 328,859 vehicles in the January-August period, more than doubling deliveries from a year ago.
Through Stellantis‘ sales network, the Chinese EV maker has expanded to over 30 international markets in the past two years.
Earlier this week, BYD announced it sold 373,626 vehicles in August, of which 371,501 were passenger vehicles, a 8.9% rise from a month before. The company also said that production declined for a second straight month, the first such streak since mid-2020.
From January 1 to August 31, the automaker sold 2,863,876 vehicles globally. This means that, according to its target of 5.5 million vehicle sales, the company needs to sell 2,636,124 units in the last four months of the year.
Considering the newly reported target, BYD expects to sell at least 1,736,124 vehicles up until the end of the year.
Last week, the company reported its second quarter earnings results, posting a profit loss for the first time in over three years.
Net profit totalled 6.4 billion yuan (nearly $900 million), down 29.9% from a year earlier, after doubling in the first quarter.
On the other hand, revenue rose by 14% to 200.9 billion yuan (about $28.2 million).
