BYD proves that it's more than just low-cost electric vehicles.

The leading EV manufacturer in China is making headlines with its impressive sales figures in May, driven by significant price cuts. The company nearly hit a new sales record, underscoring its growing dominance in the new energy vehicle (NEV) market.

Surge in NEV Sales

In May, BYD sold 331,817 NEVs, including both EVs and plug-in hybrid electric vehicles (PHEVs), marking a 38% increase year-over-year (YOY) and a 5% rise from April's 313,245 units. 

According to CNEVPost, this impressive performance brings BYD close to its record of 341,043 NEVs sold in December 2023.

Related Article: BYD Delays Construction of Electric Vehicle Factory in Vietnam Amid Market Slowdown 

Record-Breaking Plug-In Hybrid Sales

BYD's PHEVs continue to set new milestones, with a record 184,093 units sold in May, reflecting a 22% YOY growth. This marks the third consecutive month of record-breaking PHEV sales. 

To date, BYD has sold 685,960 PHEVs this year, a 35% increase from the 507,862 units sold during the same period last year.

Growth in Fully Electric Vehicle Sales

The company's fully electric vehicle sales are also on the rise, with 146,395 units sold in May, up 22% YOY and 9% from April. This growth follows the launch of BYD's lower-priced "Honor" edition models earlier this year, aimed at intensifying competition against internal combustion engine (ICE) vehicles.

Expansion into New Segments

Beyond its affordable EVs, BYD is expanding into new and popular segments such as mid-size SUVs, luxury vehicles, and pickups.

The launch of the Sea Lion 07 in May, priced at $26,250 (189,800 yuan), is set to challenge Tesla's Model Y, which starts at $34,550 (249,900 yuan) in China. BYD sold 3,400 Sea Lion 07 models last month alone.

What's more, BYD has also entered the pickup market with the introduction of the Shark PHEV in Mexico, set to compete globally with models like Toyota's Hilux and the Ford Ranger.

BYD's Aggressive Pricing Method

BYD's aggressive pricing strategy has made its EVs particularly competitive in the market. The Seagull EV Honor Edition, priced at just $9,700 (69,800 yuan), is one of the cheapest EVs available. This model, known as the Dolphin Mini overseas, is gaining traction in international markets, including Brazil and soon Europe, where it is expected to start at around 20,000 euros ($21,500), undercutting local rivals.

With regard to expansion, France is willing to open a BYD factory to attract more customers in Europe. Recently, BYD opened its first Caribbean store in Port of Spain, Trinidad, and Tobago.

Last week, BYD launched its fifth-generation Dual Mode (DM) hybrid technology, claiming the highest thermal efficiency globally at +46%. This new tech allows BYD's PHEVs to achieve a combined CLTC range of up to 2,100 km (1,300 miles), enabling long-distance travel, such as from New York to Miami, on a single charge.

BYD's Low-Cost EVs Are a Threat to Competitors

BYD's low-cost EVs are raising concerns among competitors. Ford's CEO Jim Farley recently praised the Seagull EV, calling it a "pretty damn good" car and warning competitors of BYD's competitive advantage, per Electrek.

Despite potential tariffs, BYD is confident that its strategic moves, including the establishment of two plants in Europe, will mitigate any adverse effects.

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