(Bloomberg) — BYD Co. reported a 41% drop in vehicle sales for February from a year earlier, after a record-long Lunar New Year holiday brought production and retail activity in China to a near standstill for much of the month.
The world’s largest electric-car maker sold 190,190 vehicles last month, including both plug-in hybrids and pure-battery models, it said in a statement Sunday. That included 187,782 passenger vehicles, which represent the bulk of the Chinese company’s volume. Sales for February dropped 9.5% from the previous month. Exports of new energy vehicle reached 100,600 units.
Sales for the first two months of the year fell 36% to 400,241 units, with BYD’s domestic performance sputtering amid a tapering of recent stimulus policies and intensified competition. Because the Lunar New Year holiday timing shifts annually and creates significant volatility in monthly production and demand, combining January and February allows for a clearer comparison against the year-earlier period.
A reduction in purchase tax exemptions and the cooling of consumer confidence are weighing on demand, with buyers waiting for new model releases and further clarity on government trade-in initiatives before committing to purchases.
Shenzhen-based BYD’s focus remains on balancing inventory levels at dealerships while maintaining the aggressive pricing that has helped it defend its market share throughout the past year.
With the weakness at home, BYD’s international expansion has helped it sustain volume growth. Key markets across Latin America and Europe are now central to the company’s strategy.
Investors are set to look at BYD’s performance for March, traditionally a high-volume month, for signs of a rebound as demand typically picks up following the holidays. And with the Beijing Auto Show approaching in late April, BYD is under pressure to roll out new models to stimulate domestic sales.
–With assistance from Felix Tam.
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