BEIJING, June 1 (Reuters) – Chinese electric vehicle giant BYD halted its longest streak of sales declines in May, despite weakening domestic demand and intensifying competition continuing to weigh on performance.
Global vehicle sales rose 0.3% year-on-year to 383,453 units last month, according to Reuters calculations based on a statement released on Monday, after eight months of sales contraction.
Production at the world’s largest electric vehicle maker increased 8.8% year-on-year last month, ending a series of consecutive declines that had persisted since July 2025.
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Exports continued to record robust growth, offsetting the persistent slowdown in the domestic market, where BYD sales fell 24%, recording a decline for the 13th consecutive month.
Sales abroad increased 80.4% compared to the same period last year, reaching 160,644 units in May, driven by greater demand for electric vehicles in Europe and emerging markets, driven by rising oil prices following the war between the US and Israel against Iran.
Fierce competition in the country
BYD and other Chinese automakers have been gaining traction in Europe as demand for electric vehicles continues to support overall market growth.
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Its domestic market, however, continues to face difficulties after a fierce price war. BYD’s economy segment, a key pillar of its volume strategy, has proven particularly vulnerable as government subsidies decline and consumer demand weakens against a backdrop of economic slowdown.
“Geely’s Galaxy series is drawing away BYD buyers in the mass market segment with a strong brand and competitive prices, while Leapmotor is attracting practical consumers with low prices,” said Li Yanwei, an analyst at the China Automobile Dealers Association (CADA).
Leapmotor sold 81,569 cars in May worldwide, an 81% increase from the previous year.
