BYD posts smaller YoY decrease in May sales

Shanghai (Gasgoo)- Shenzhen-based automaker BYD said it sold 31,821 new vehicles in May, which slid 6.19% year on year, versus the 15.94% decrease in April sales. Its year-to-date auto sales still plunged 34.03% from a year ago to 124,903 units.

Specifically, BYD's NEV sales reached 11,325 units last month, tumbling 48.29% over a year earlier and falling 12.85% over a month earlier. With 46,512 units sold in total, its NEV sector suffered a year-over-year slump of 60.94% for the first five months.

(BYD Tang EV, photo source: BYD)

Part of the explanations for the NEV downturn is that consumers' purchasing power was somewhat curtailed due to their wait-and-see attitude towards the forthcoming BYD Han, an all-new flagship NEV sedan model that is set to hit the market this month, according a senior analyst from Gasgoo Auto Research Institute (GARI). On the other hand, consumers have been distracted by other new products as automakers are scrambling to deploy NEV businesses and put NEV products onto the market, he added.

(BYD Song Pro, photo source: BYD)

In May, there were 20,496 oil-fueled vehicles sold last month, representing a robust year-on-year leap of 70.5%. The Jan.-May fuel-burning vehicle sales also evidently grew 11.58% to 78,391 units, which was significantly thanks to the driving force of the BYD Song Pro.

The contracted decline in BYD's sales coincides with the general growth trend for China’s overall auto market. China's Vehicle Inventory Alert Index (VIA) stood at 54.2% in May, which dropped 4.6 percentage points over a month ago, while edged up 0.4 percentage points over a year ago, according to the China Automobile Dealers Association (CADA). However, it was still above the official warning threshold. Besides, based on the PV retail performance in April, a V-shaped recovery in China's auto sales can basically be determined for 2020, according to the China Passenger Car Association (CPCA).

“With the coronavirus epidemic ebbing in China, the pent-up demands have been unleashed and the auto market is resilient in part due to the efficacy of the governmental incentives and frequent roll-out of new products,” said the aforementioned analyst for GARI.

(Han EV, photo source: BYD's WeChat account)

In June, the BYD Han, BYD's all-new flagship sedan to its “Dynasty” series, will go on sale with four variants—three BEVs and one PHEV—offered at one go. It is not only the first mass-produced model that carries BYD's “blade battery”, a new type of new lithium iron phosphate battery (LFP battery) designed to largely increase the energy density of battery pack with greater safety, but also the first one powered by Huawei’s 5G technology. The Internet-famous new model is highly expected to perform as a black horse within BYD’s NEV lineup.

However, the Gasgoo's analyst also pointed out that relying on a single model is far from a done deal, especially in the NEV market that embraces so many powerful rivals. Stabilizing and improving the competitiveness of its whole NEV matrix and recovering to the former growth level are more important than anything else.