BYD Reports Nearly Two-Year Low in January Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy XPEV?
Source: CNBC
- Sales Decline: BYD reported only 83,249 battery electric passenger cars sold in January, marking a significant drop and indicating weak domestic demand while facing fierce competition, which could impact its market share.
- Policy Impact: The reinstatement of a 5% purchase tax on new energy vehicles starting January 1 ends over a decade of exemptions, likely further suppressing consumer purchasing intentions and affecting overall sales.
- Intensifying Competition: Brands like Xiaomi and Nio reported year-on-year delivery increases in January, with Xiaomi exceeding 39,000 deliveries, highlighting intensified market competition that may pressure BYD's sales.
- Export Decline: BYD's exports fell to 100,482 vehicles in January from 133,172 in December, reflecting weakening international demand, which could adversely affect the company's overall performance.
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Analyst Views on XPEV
Wall Street analysts forecast XPEV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XPEV is 29.67 USD with a low forecast of 20.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 16.880
Low
20.00
Averages
29.67
High
50.00
Current: 16.880
Low
20.00
Averages
29.67
High
50.00
About XPEV
XPeng Inc is a holding company mainly engaged in the design, development, manufacturing and marketing of smart electrical vehicles (EVs). The Company develops full-stack advanced driver assistance systems (ADAS) software in house and has deployed such software on mass-produced vehicles. The Company offers various models, including G9 (mid- to large-sized sport utility vehicle (SUV), P7i (sports sedan), G6 (coupe SUV), X9 (seven-seater multi-purpose vehicle (MPV)), MONA M03 (sedan) and P7+ (family sedan). The Company operates stores across China, including both stores directly operated by the Company and franchised stores. The Company also offers technical research and development services, services embedded in a sales contract, maintenance service, supercharging service.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Decline: BYD reported sales of 83,249 electric vehicles in January, marking the lowest monthly sales in nearly two years, indicating mounting pressures from weak domestic demand and intensified competition, which could impact the company's future market share.
- Policy Impact: Starting January 1, China reinstated a 5% purchase tax on new energy vehicles, ending over a decade of tax exemptions, a policy shift that may lead to decreased consumer purchasing intentions and exacerbate market contraction.
- Intensifying Competition: Amid a fierce price war, other electric vehicle brands such as Xiaomi and Zeekr reported increased sales in January, highlighting the growing competitive pressure on BYD in the lower-end market, which could affect its long-term profitability.
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- Sales Decline: BYD reported only 83,249 battery electric passenger cars sold in January, marking a significant drop and indicating weak domestic demand while facing fierce competition, which could impact its market share.
- Policy Impact: The reinstatement of a 5% purchase tax on new energy vehicles starting January 1 ends over a decade of exemptions, likely further suppressing consumer purchasing intentions and affecting overall sales.
- Intensifying Competition: Brands like Xiaomi and Nio reported year-on-year delivery increases in January, with Xiaomi exceeding 39,000 deliveries, highlighting intensified market competition that may pressure BYD's sales.
- Export Decline: BYD's exports fell to 100,482 vehicles in January from 133,172 in December, reflecting weakening international demand, which could adversely affect the company's overall performance.
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- Cost Reduction: Pony.ai reported that the bill of materials for its seventh-generation autonomous driving system has decreased by approximately 70% compared to the previous generation, which not only improves deployment economics but also provides stronger financial backing for future commercial operations.
- Feature Enhancements: The new generation of Robotaxis includes features such as Bluetooth-based automatic unlocking, in-cabin voice interaction, online music, and pre-trip climate control, aimed at enhancing passenger experience and reducing motion sickness, thereby increasing market competitiveness.
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Emerging Competition: Tesla's dominance has attracted increased competition from other car manufacturers looking to capture a share of the electric vehicle market.
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- Ongoing Technology Investment: Nio continues to invest heavily in smart EV technologies, planning to launch an upgraded NIO World model in January 2026 to enhance assisted driving, smart parking, and safety features, further improving user experience and competitive positioning.
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- Reassertion on Taiwan Issue: Chinese President Xi Jinping urged U.S. President Trump to handle arms sales to Taiwan with caution, indicating that tensions over Taiwan remain a significant issue, which could have long-term implications for U.S.-China diplomatic relations.
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- Policy Impact: Starting January 1, China reinstated a 5% purchase tax on new energy vehicles, ending over a decade of tax exemptions, a policy shift that may lead to decreased consumer purchasing intentions and exacerbate market contraction.
- Intensifying Competition: Amid a fierce price war, other electric vehicle brands such as Xiaomi and Zeekr reported increased sales in January, highlighting the growing competitive pressure on BYD in the lower-end market, which could affect its long-term profitability.
- Export Slowdown: BYD's exports fell to 100,482 vehicles in January from 133,172 in December, reflecting uncertainty in global market demand, which may negatively impact the company's overall performance.
See More
BYD Reports Nearly Two-Year Low in January Sales
- Sales Decline: BYD reported only 83,249 battery electric passenger cars sold in January, marking a significant drop and indicating weak domestic demand while facing fierce competition, which could impact its market share.
- Policy Impact: The reinstatement of a 5% purchase tax on new energy vehicles starting January 1 ends over a decade of exemptions, likely further suppressing consumer purchasing intentions and affecting overall sales.
- Intensifying Competition: Brands like Xiaomi and Nio reported year-on-year delivery increases in January, with Xiaomi exceeding 39,000 deliveries, highlighting intensified market competition that may pressure BYD's sales.
- Export Decline: BYD's exports fell to 100,482 vehicles in January from 133,172 in December, reflecting weakening international demand, which could adversely affect the company's overall performance.
See More
