China's largest electric vehicle (EV) maker, BYD, experienced its first monthly delivery decline this year amid an intense price war shaking the country's EV market.
In July, BYD shipped 341,030 vehicles, down 10% from June's 377,628 units. This marks the first drop after months of steady growth, as the company struggles with fierce competition and pressure from Chinese policymakers.
The price war began when BYD cut prices by about 30% on several lower-end battery and hybrid models in May.
This move forced other manufacturers to slash prices, sparking concerns from Beijing about excessive discounts harming the industry's health.
Other major Chinese EV makers also faced challenges. Li Auto reported 30,731 deliveries in July, down nearly 40% year-over-year and its second straight monthly drop, BusinessTimes said.
Nio saw deliveries fall to 21,017 vehicles, a 2.7% decline compared to last year.
Both companies launched new models at the end of July, hoping to boost sales: Li Auto introduced its first pure electric SUV, the Li i8, priced between $44,700 and $51,400, with deliveries starting August 20.
Nio rolled out the L90 SUV, available from August 1 for six-seaters and late September for seven-seaters.
Despite BYD's and other rivals' struggles, some brands reported strong gains. Xpeng delivered a record 36,717 EVs in July, marking its ninth consecutive month above 30,000 vehicles.
Xiaomi grew to over 30,000 deliveries following its YU7 SUV launch.
China’s largest EV maker BYD posted its first monthly delivery decline this year, amid stiff competition from a price war that has attracted attention from policymakers in Beijing.
— CNBC International (@CNBCi) August 4, 2025
Major Chinese electric vehicle makers, including BYD, Li Auto and Nio, reported a drop in July… pic.twitter.com/wyNDIwJV3i
BYD Shares Fall 4.2% Amid Slowing Sales Growth Concerns
Leapmotor set a personal best with 50,129 units shipped, supported by its partnership with European automaker Stellantis.
According to CNBC, The Harmony Intelligent Mobility Alliance, which includes Huawei-backed brands like Aito, shipped 47,752 units, mostly from Aito's Wenjie series.
BYD's stock dropped 4.2% in early Hong Kong trading on August 4, reflecting investor worries about slowing sales growth.
The company has delivered 2.5 million vehicles through July but needs to average roughly 602,000 units monthly to reach its ambitious 5.5 million annual sales target.
Last December, BYD sold nearly 515,000 vehicles—the highest monthly figure in its history.
Industry experts note that China's new car sales usually slow during summer months, but the escalating price war and regulatory warnings add uncertainty.
China's Passenger Car Association estimated a 7.6% year-over-year retail sales increase in July but an 11% decline from June.
Despite challenges, BYD remains popular outside China, with rising sales in India approaching last year's total.
Meanwhile, other Chinese EV makers are showing resilience, with Geely posting its highest sales since November at 237,717 units in July.
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