(Aug 1): BYD Co’s vehicle sales rose 22% in July year-on-year, kicking off a crucial second half where it needs to sharply lift shipments to meet its annual deliveries target.
 
The automaker sold about 420,000 cars in total last month, figures released on Saturday showed. It is already falling behind the pace needed to meet its annual sales goal. After selling 1.81 million vehicles in the first half, the company needs to average about 530,000 a month for the rest of the year to reach the lower end of its five million to 5.5 million goal.

The figures underscore the challenge facing chief executive officer Wang Chuanfu after a difficult first half in which BYD idled assembly lines to prepare for upgraded batteries. The July sales continue an established pattern this year where exports — 43% of total — have grown strongly as the company pushes aggressively into markets from South America and Europe. In contrast, domestic demand is struggling under the weight of a sluggish economy and intensifying competition.

Investors are closely watching the export mix to assess BYD’s resilience against hardening trade barriers and tariffs in some global markets. Its international profile is being bolstered by a slew of new models, including right-hand-drive rollouts of the DM-i 5.0 hybrid tech in the Seal 6 series, a refreshed European electric Seal lineup, and a closely watched foray into Japan’s mini “kei car” market with the new electric Racco.

However, BYD’s global expansion is facing risks in Hungary, which serves as the anchor for its European manufacturing strategy. The company’s flagship factory site under construction in Szeged has come under scrutiny over alleged labour abuses by subcontractors, while a change of government in Budapest has triggered a probe into the massive state subsidies, tax breaks and environmental exemptions previously granted to BYD.

These escalating disputes have directly impacted BYD’s rollout schedule. The automaker recently confirmed that vehicle assembly at the Szeged plant has been delayed to the fourth quarter of 2026, roughly a year behind its original target. 

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