BYD, Leapmotor buck EV market slowdown as pressure piles up on small rivals
Top performers BYD and Leapmotor clawed their way up higher in terms of sales last month, even as China’s electric vehicle (EV) market was shrinking amid weaker consumer demand. However, smaller players were expected to face falling sales and mounting losses for the rest of the year as competition got fiercer, according to analysts. BYD, the world’s largest EV builder, saw its sales in August…
BYD and Leapmotor defy EV market slump as smaller rivals face losses
Top-performing BYD and Leapmotor witnessed a surge in sales in August, even as China's electric vehicle (EV) market contracted due to lower consumer demand. However, smaller manufacturers were anticipated to experience declining sales and mounting losses throughout the remainder of the year because of escalating competition, analysts forecasted.
BYD, the world's leading EV manufacturer, reported that its sales in August reached their highest in nine months, increasing 17.8 percent year-on-year to 440,293 units, according to a statement shared on Tuesday. This strong performance added to proof that the Shenzhen-based automaker, driven by new model launches and robust exports, was regaining momentum despite a challenging start in 2026.
Leapmotor, recognized for its budget-friendly smart EVs, extended its unprecedented streak to a fifth month, selling 103,129 vehicles globally and recording an 80.7 percent year-on-year increase, as per a company statement. Leapmotor's worldwide reach is enhanced by a collaboration and joint venture with European automaker Stellantis.
Phate Zhang, founder of Shanghai-based data firm CnEVPost, stated, "The widening gap between the winners and the bottom players would force some underachievers to exit the market in the coming one or two years." "The leading EV assemblers, with production scale and research strength, are set to increase their global market share due to their advantages in pricing and innovation."
In the first 23 days of August, Chinese automakers sold 614,000 EVs to domestic buyers, a 12 percent decline compared to the same period in 2025, according to preliminary data from the China Passenger Car Association (CPCA). On Friday, BYD disclosed an 80.7 percent year-on-year rise in its second-quarter earnings, reaching 8.2 billion yuan (US$1.22 billion), surpassing the consensus estimate of 8 billion yuan from a Bloomberg analyst survey.
During April to June, BYD achieved overseas sales of 471,091 vehicles, marking an 82.5 percent year-on-year increase, fueled by a global energy crisis that encouraged more consumers to choose battery-powered cars. Over recent months, the EV giant also unveiled a range of new models under its premium and mass-market brands, such as Denza and Sealion.
These new cars attracted consumers with features like high-performance batteries compatible with rapid charging. Among the nearly 30 Chinese EV manufacturers that solely produce vehicles, BYD and Leapmotor were the only ones profitable in the first half of the year. Their competitors struggled to break even, plagued by high research and development expenses and competitive pricing that eroded their profit margins.
From January to July, Chinese automakers delivered 5.67 million EVs to domestic customers, a 12.5 percent decrease from the previous year, as per the CPCA. Global consultancy AlixPartners predicted at the end of June that further price cuts offered by mainland carmakers to protect their market share in the second half of 2026 could worsen their deteriorating financial situation.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
