China’s leading electric vehicle manufacturer, BYD, experienced its first monthly delivery decline this year in July, indicating a shift in the fiercely competitive Chinese EV market.
BYD shipped 341,030 vehicles, down from 377,628 in June and roughly flat year-over-year, breaking a steady growth trend that began in January. This comes after BYD slashed prices by around 30% on entry-level battery-electric and hybrid models in May, sparking a price war that drew warnings from Beijing regulators concerned about market stability.
Other major Chinese EV makers saw mixed results. Li Auto’s deliveries dropped nearly 40% year-on-year to 30,731 units in July, marking its second consecutive monthly fall. Nio also saw a decline, shipping 21,017 units, down from 24,925 in June and down 2.7% year-over-year.
Both companies launched new models at the end of July: Li Auto introduced its first fully electric SUV, the Li i8, priced between 321,800 and 369,800 yuan, with deliveries starting in August; while Nio began delivering its L90 SUV in the same month.
Meanwhile, some rivals recorded gains. Xiaomi delivered more than 30,000 EVs in July, boosted by the launch of its YU7 SUV. Xpeng posted a record 36,717 deliveries, its ninth straight month above 30,000, and announced a new P7 sedan debut in early August.
The Huawei-backed Harmony Intelligent Mobility Alliance, including brands like Aito and Chery, sold 47,752 vehicles, with Aito’s Wenjie series making up most of the total. Leapmotor, backed by Stellantis, achieved a new high with 50,129 units delivered, while Geely’s Zeekr remained stable at 16,977 units.
The unfolding price war displays a critical phase for China’s EV sector, where sustained growth will require innovation, quality improvements, and regulatory balance. BYD must manage competitive pressures carefully to meet its 5.5 million vehicle sales target for 2025 amid a maturing and increasingly regulated market.