Sales of New Energy Vehicles (NEVs) by BYD in July have slid back to the figures of the same period last year, with Plug-in Hybrid Electric Vehicles (PHEVs) once again witnessing a significant drop.

BYD's PHEV Sales Decline Amidst Market Shift Towards BEVs

BYD, China's second-largest power battery manufacturer, has experienced a four-month sequential decline in sales of plug-in hybrid electric vehicles (PHEVs). This trend, which began in April, is primarily due to a clear demand problem despite significant discounts and the release of new, cheaper models.

In July alone, BYD sold 163,143 PHEV units, marking a 4.5% decrease from June and a 22.3% drop year-on-year[1][2][5]. Even with the introduction of 10 more PHEV models that are about 20-33% cheaper on average than last year, the decline persists.

This shift away from PHEVs seems to be part of a broader strategic shift and market dynamics. BYD is increasingly focusing on battery electric vehicles (BEVs), which are now over 53% of its passenger car sales. In July 2025, BEVs showed strong growth of nearly 37% year-on-year, despite a slight month-over-month drop[2][3].

The slowdown in PHEV sales mirrors a wider softening of the EV market in China, the largest EV market globally. Overall EV sales growth has slowed, and buyers appear to be shifting preferences. Some sales drops may be affected by broader economic or market factors, including competition from used EVs and evolving incentives in various markets[4].

The declining demand for PHEVs suggests a market preference shift away from hybrids towards full electric vehicles, driven by stronger incentives, perceived technological advantages, and regulatory pushes towards zero-emission vehicles[1][2][3].

BYD's NEV sales in July remained largely flat from the same period last year, with a total of 376,179 units sold. This includes both passenger and commercial vehicles. Commercial NEVs sold 35,949 units in January-July, up 384.36% year-on-year[6].

It's worth noting that BYD ceased production and sales of vehicles powered solely by internal combustion engines in March 2022. In July 2025, BYD sold 344,296 vehicles in total, up 0.56% year-on-year but down 10.01% from June[7]. Overseas sales also declined sequentially in July.

In an effort to cater to a wider audience, BYD launched a lower-priced Yuan Up variant without smart driving capabilities[8].

[1] BYD's PHEV Sales Decline for Fourth Consecutive Month [2] BYD Shifts Focus Towards Battery Electric Vehicles [3] EV Market in China Slows Down [4] Competition from Used EVs and Evolving Incentives Affect Sales [5] Market Preference Shift Away from Hybrids Towards Full Electric Vehicles [6] BYD's NEV Sales in July 2025 [7] BYD's Total Vehicle Sales in July 2025 [8] BYD Launches Lower-Priced Yuan Up Variant

Despite offering significant discounts and releasing new, cheaper models, China's second-largest power battery manufacturer, BYD, has seen a four-month sequential decline in sales of plug-in hybrid electric vehicles (PHEVs).
In contrast to the decline in PHEV sales, BYD's battery electric vehicles (BEVs) account for over 53% of its passenger car sales, showing strong growth of nearly 37% year-on-year in July 2025.
The EV market in China, the largest EV market globally, has experienced a slowdown, with buyers shifting preferences towards full electric vehicles.
The declining demand for PHEVs and the shift towards BEVs can be attributed to stronger incentives, perceived technological advantages, and regulatory pushes towards zero-emission vehicles.
BYD ceased production and sales of vehicles powered solely by internal combustion engines in March 2022.
In an effort to cater to a wider audience, BYD launched a lower-priced Yuan Up variant without smart driving capabilities.
Regardless of the decline in PHEV sales, BYD's total vehicle sales in July 2025, which include both passenger and commercial vehicles, remained largely flat from the same period last year.

Sales of New Energy Vehicles (NEVs) by BYD in July have slid back to the figures of the same period last year, with Plug-in Hybrid Electric Vehicles (PHEVs) once again witnessing a significant drop.