BYD: Chinese EV stocks tumble despite spike in UK demand
Shares in Chinese electric vehicle (EV) makers slumped on Monday despite surging interest from UK buyers, as industry titan BY introduced a round of new price cuts in an already bruising market battle.
Hong-Kong listed BYD dropped as much as 8.25 per cent from a record high set last week, after an announcement over the weekend slashing prices on 22 electric and plug-in hybrid models.
The steepest cut, a 34 per cent discount, was applied to one plug-in hybrid. This reduced the model’s price by RMB 53,000 (£5,423) to RMB 102,800 (£10,519).
Other Chinese automakers followed suit, with state-backed Changan offering a 15 per cent discount on one of its SUVs, while Stellantis-backed Leapmotor also cut prices by up to 30 per cent on some models.
The aggressive discounting, part of BYD’s ‘fixed price’ campaign running until the end of next month, is expected to lift the firm’s second-quarter vehicle shipments by up to 30 per cent, according to Citi analysts.
Still, this growth comes at the cost of profitability, with BYD’s estimated net profit per vehicle for the quarter falling short of its full year target.
Smaller rivals with weaker balance sheets now face a tough choice to either cut prices and bleed, or lose market share.
“BYD holds significant pricing power in the market, so each round of its price cuts is set to prompt other car brands to follow suit”, said Li Yanwei of the China Automobile Dealers Association.
UK becomes a bright spot for Chinese EVs
Even as competition heats up overseas, Chinese EV brands are gaining serious traction on home soil.
New data from Auto Trader shows a surge in consumer interest, with over 1.4m views on listings for Chinese EVs in the first four months of this year, up from 1.3 per cent of total views a year earlier, to 5.3 per cent now.
BYD accounted for half of all Chinese EV traffic on the platform.
Ian Plummer, commercial director at Auto Trader, said: “Our research shows a breakthrough for Chinese manufacturers in the UK market over the last 12 months. Chinese electric vehicles are cutting-edge products, backed by affordable battery technology”.
UK looks to stay competitive amid trade tensions
While Chinese EV makers flood the market with affordable options, Britain is doubling down on its own green strategy.
Prime Minister Keir Starmer’s recently announced £2.3bn package aims to bolster domestic EV manufacturing and infrastructure, confirming a 2030 ban on new petrol and diesel cars, while offering regulatory flexibility and tax incentives.
While US president Donald Trump imposing steep tariffs on foreign-made vehicles, and the EU considering similar measures, the UK could become an increasingly attractive destination for Chinese exports.
“Trade turbulence with the US and EU tariffs is also making the UK relatively more attractive as a market”, added Plummer. “There will be much more to come from the Chinese carmakers”.
The UK’s EV sales rose over 40 per cent in March, cementing its place as Europe’s largest and the world’s largest EV market.
“This is about future proofing British industry”, said Starmer. “And delivering change that actually works for working people”.