Chinese EV giant BYD Co. Limited (HJK:1211) (BYDDF) kicked off 2025 with a strong year-over-year growth of 49.16% in NEV (new energy vehicles) sales, despite a 42% decline from the previous month. This drop was attributed to the seasonal slowdown in car sales caused by the Chinese New Year holiday. In total, BYD sold 300,538 NEVs in January, up from 201,493 units in the same month last year. BYD shares in Hong Kong fell by nearly 1% as of writing.
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EV Makers Feel the Seasonal Chill
BYD and its rivals in China’s auto market follow a seasonal pattern, with sales typically dipping at the start of the year, especially around the Chinese New Year holiday. This year, Chinese New Year holiday runs from January 28 to February 4, with the last week of January seeing minimal sales. As a result, most EV manufacturers reported a monthly decline in deliveries for January.
Notably, XPeng (XPEV) delivered 30,350 vehicles in January, soaring 268% year-over-year but slipping 7.29% from December’s 36,695 units. However, XPeng still marked its third consecutive month exceeding 30,000 deliveries. On the other hand, BYD’s rival Li Auto (LI) was also hit hard due to the seasonal decline. Li Auto delivered 29,927 vehicles in January, reflecting a 48.85% decline from December and a 3.97% drop compared to the same month last year.
Nonetheless, the car deliveries peak towards the year’s end, compensating for this decline.
BYD Posts Strong Production Numbers in January 2025
BYD posted a 59.48% increase in production in January 2025. The production was driven by exceptional growth in the plug-in hybrid electric vehicle segment, which saw a remarkable 105.93% rise in production volume. Last month, BYD reached a significant milestone with the production of its 10-millionth NEV, underscoring the company’s rapid growth in manufacturing.
Meanwhile, BYD’s exports reached a record 66,336 units in January 2025, marking an 83.3% increase compared to last year.
Is BYD a Good Stock to Buy Now?
According to TipRanks consensus, BYDDF stock has received a Moderate Buy rating, backed by two Buy and one Hold recommendations. The BYD Co. share price target is $41.37, which implies an upside of 18.13% from the current trading level.
