Taken on July 16, 2024. Photo by Rutger van der Maar via Flickr.BYD is stumbling again, logging its third straight monthly slide in sales after delivering 480,186 vehicles in November, based on figures shared by the Chinese EV maker on Monday.
This drop of 5.3% from last year is landing at the worst possible time, right when buyers in China normally rush to close deals before the December 31 end of the full new-energy vehicle tax exemption.
The slowdown is tied to shrinking interest in the company’s models across China. Geely Automobile Holdings Ltd. has pushed out new versions of its mass-market cars. Xiaomi Corp. has turned its YU7 into a breakout hit.
Both moves cut into BYD’s share in the cheaper and more premium ends of the EV market. And with one month left in the year, BYD now needs to move about 418,000 more cars in December to hit its 4.6 million full-year target, which the company quietly trimmed earlier.
Two straight quarters of falling profit have added more stress as China tightens rules on deep discounting, the same strategy that helped BYD gain ground over the past two years.
China cracks down as BYD faces demand drop
The company’s one bright spot came from exports. BYD shipped 131,935 vehicles abroad in November, but even that wasn’t enough to balance the drop at home. The international plan is also facing headwinds.
Trade barriers in Europe and North America are rising, making it harder for the company to push cars into those markets as China’s domestic EV supply continues to pile up.
Even BYD’s registrations across Europe are losing steam. In Sweden, November registrations fell 51%, and in Norway, they dropped 50.3%. Only Denmark brought any relief, with a 6% rise in registrations during the month.
The numbers show that the pressure on the brand isn’t limited to China, but instead is visible across multiple regions.
Tesla, meanwhile, had its own problems across Europe in November. Registrations in France dropped 58% to 1,593 vehicles. Sweden recorded a 59% slide to 1,466, and Denmark saw a 49% fall to 534. These declines came even though Tesla updated its Model Y earlier this year.
The only place where the company found momentum was Norway, where registrations almost tripled to 6,215, breaking the country’s annual EV sales record with a month still left.
Tesla struggles as Europe reacts to Elon Musk and aging models
As you may know, Tesla’s slowdown began late last year after Elon Musk praised far-right political figures, a move that triggered pushback across Europe. The trouble deepened in November when a fire erupted at a Tesla dealership in Southern France, prompting investigators to open a criminal probe, local outlets reported.
Elon has since pulled back from political comments, but the company’s European performance still hasn’t recovered.
Competition is rising fast. Analysts say European buyers now have more options than ever, especially from Chinese manufacturers. Tesla’s lineup is seen as aging. And consumer trust is softening.
A study seen by Reuters from Escalent, based on over 2,000 people in Europe’s five biggest auto markets, said 38% of respondents feel Tesla’s appeal has faded and that it trails rivals on design, quality, and emotional connection.
Tesla tried to reboot interest by rolling out new, cheaper versions of the Model Y, priced around €40,000 ($46,468) in Germany. But only a small batch reached Europe by the end of November. In Sweden, Model Y sales dropped 67% to 426.
In Norway, they rose 19% to 3,648, while Denmark posted a 74% plunge to 206, based on data from Bilstatistik.dk. The Model 3 did slightly better there, rising 29% to 326 units, making it the country’s eighth best-selling car for the month.
Back in Scandinavia, BYD wasn’t spared either. The company’s November registrations dropped 51% in Sweden and 50.3% in Norway, with Denmark again being the outlier with a 6% surge.
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