- As the retrofit of the second-generation Blade Battery production line nears completion, BYD's sales are improving rapidly.
- BYD's overseas sales reached a record 160,644 units in May, soaring 80.40% year-on-year.
BYD (HKEX: 1211) posted a slim year-on-year increase in wholesale sales in May, ending the company's previous eight consecutive months of sales decline, as the Chinese automaker benefits from strong demand in overseas markets.
BYD saw wholesale sales of 383,453 new energy vehicles (NEVs) in May, a marginal increase of 0.26% from the same period last year. Compared with April, the company's sales achieved a significant month-on-month growth of 19.41 percent.
Despite signs of recovery in the single-month performance, overall annual sales remain under pressure. In the January-to-May period this year, BYD's cumulative NEV sales were 1,405,039 units, still down 20.32% from the same period last year.
Passenger NEVs sold 376,990 units in May, essentially flat with the 376,930 units in the same period of the full year, and up 20.02% from April.
BYD's passenger battery electric vehicle (BEV) sales were 198,674 units in May, down 2.79% year-on-year, but up by 26.59% from April.
Its passenger plug-in hybrid electric vehicle (PHEV) sales were 178,316 units in May, achieving year-on-year growth of 3.34% and rising 13.46% compared with April.
The explosive growth in overseas markets was the biggest highlight of the May performance.
BYD's overseas sales reached a record 160,644 units in May, soaring 80.40% year-on-year. This contributed 42% of the month's total NEV sales.
By contrast, sales in China's domestic market remained weak. BYD's domestic sales in May were 222,809 units, down 24.07% year-on-year. However, this figure was up 19.77% from March.
The commercial NEV business also showed some resilience in May. The segment sold a total of 6,463 units in May, up 16.53% year-on-year. But in the first five months of this year, cumulative commercial NEV sales were still down 9.99% year-on-year.
The preliminary recovery in sales comes as the company goes through a painful technological transition. BYD chairman Wang Chuanfu previously warned that the company is facing severe challenges from a battery capacity shortage.
At the core of the capacity crunch is a comprehensive overhaul of production lines. BYD is switching from the first-generation Blade Battery to the second-generation product with flash charging capability, which has significantly extended the delivery cycles of several main models.
This production pressure was especially evident at the premium personalized brand Fang Cheng Bao. Deliveries of the Tai 3 flash charging SUV were once forced to be postponed from mid-April to May, with executives even personally traveling to factories in multiple locations to oversee efforts to boost capacity.
As the production line upgrade gradually wraps up in May, the capacity bottleneck is expected to ease. Wang said capacity will continue to be released, monthly sales will enter a channel of steady growth, and a delivery ramp-up is expected after June.
BYD intensively launched multiple new vehicles in May, bringing the 2026 Sealion 06 DM-i and the Song Ultra DM-i to market.
Both plug-in hybrid SUVs, equipped with the fifth-generation DM technology, start at 129,900 yuan ($19,201). They not only offer a combined range of up to 1,845 km but also introduce advanced smart driving systems.
The Song Ultra DM-i is the first to feature an AI agent with active interaction capabilities, responding to the AI trend that has been popular in China over the past few months.
In the all-electric segment, BYD launched the third-generation Yuan Plus to defend its share of the compact market. The new vehicle's starting price is set at 119,900 yuan, and it comes standard with the second-generation Blade Battery and flash charging technology.
In addition, BYD is accelerating its expansion into the premium market. The Datang, the first D-segment flagship SUV in its Dynasty lineup, is expected to officially go on sale in mid-June.
The full-size SUV, with a pre-sales price starting at 250,000 yuan, has received a strong market response, with pre-orders rapidly surpassing 100,000 units within the first two weeks of opening pre-sales.
The recovery in sales is crucial to improving the company's financial position. Previously, due to the price war and surging supply chain costs, BYD's net profit fell sharply by 55.38% in the first quarter.
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