BYD set lower sales growth goals for 2024, warning of a looming price war and overcapacity in Mainland China’s electric vehicle (EV) sector.
BYD Chairman and President Wang Chuanfu held an investors conference earlier this week. According to SCMP, Wang told investors that the company’s expects deliveries to top at 3.6 million units this year, 20% more compared to 2023’s 3.02 million units. The BYD Chairman also forecasted that exports would more than double to 500,000 units this year.
The top EV manufacturer forecasts for 2024 are hopeful. However, BYD’s delivery estimates for 2024 are a third of 2023’s sales growth, which was 62.3%. The Chinese automaker estimates account for some challenges BYD expects this year.
“Overall demand for EVs [in China] is set to fall in 2024, as consumers refrain from buying items such as cars due to concerns about job prospects and incomes. A 20% increase will not be easy to achieve, given the current weak market sentiment,” said Zhao Zhen, a sales director at Wan Zhuo Auto—a car dealer in Shanghai.
In the first two months of 2024, BYD delivered 325,706 cars, up 2.9% year-over-year. In February, it slashed the prices of all its vehicles between 5% to 20%. The Chinese carmaker also slowed down construction plans for its EV factory in Vietnam.
Tesla and BYD appear to be on the same page. The American EV manufacturer is reportedly trimming production output at Giga Shanghai. Tesla’s factory in Shanghai is the company’s main export hub.
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