In May 2023, Chinese automaker BYD recorded record vehicle sales, attributed to aggressive price cuts at the end of the month.
Record Sales by BYD in May
BYD sold 382,476 vehicles in May, the highest figure for the year. Of those, 376,930 were passenger vehicles. Fully electric sales reached 204,369 units, while 172,561 were hybrids. This month marked only the second instance since early 2024 where electric sales surpassed those of hybrids. The company’s full-year target stands at 5.5 million vehicles, and it had already sold 1.76 million units by the end of May.
Market Reaction to Price Wars
The late May price cuts significantly boosted traffic at BYD showrooms. Citi Research analysts noted that dealership visits surged by 30-40% week-on-week. Meanwhile, automakers not participating in price slashing began to reduce their prices to avoid falling behind. The China Association of Automobile Manufacturers expressed concern over 'disorderly price wars' intensifying competition.
Rise of Chinese Hybrids in Europe
Chinese hybrid vehicles are starting to take up significant space in the European market. Last month, Chinese brands accounted for 7.6% of all hybrid car sales, up from below 1% a year ago. BYD is actively promoting hybrid models to meet rising demand. Competitor MG, previously the leading Chinese EV brand in Europe, has now shifted focus to hybrids due to new tariffs on EVs.
BYD's sales records and the rise of hybrid vehicles reflect shifting conditions in the automotive market, as well as changing consumer preferences in Europe.
