BYD (BYDDY) rose 1.08% in premarket after the Chinese electric vehicle maker reported a second consecutive month of global sales growth in June, with total sales rising 5.5% year-on-year to 403,472 vehicles. Overseas sales jumped 94.7% from a year earlier to 175,349 vehicles, providing the primary driver of growth as domestic China sales fell 22%, extending a run of year-on-year declines that began in May 2025. The May result, which showed a 0.3% increase, had ended an eight-month streak of declines.
Domestic weakness reflects fading policy support following subsidy cuts, a prolonged property market slump weighing on household confidence, and elevated dealer inventories. China's car sales are now forecast to fall 11% this year, a sharp downgrade from a previously estimated 1% decline, according to the China Passenger Car Association.
BYD is also nearing a decision on its second European manufacturing plant after Hungary. Rival Leapmotor posted June sales growth of 95% year-on-year to 93,376 vehicles, while Li Auto NASDAQ:LI and Xiaomi are among the EV makers facing share price pressure amid intensifying price competition and weakening domestic demand.