BYD says demand is double its capacity, but its sales data tells a different story

BYD executive vice president Stella Li predicts China's EV market will reach 80% penetration, citing record NEV sales of 62.9% in May and a 39% plunge in petrol car sales. However, BYD's own domestic sales were flat year-on-year in May, and Q1 net profit fell 55% amid a fierce price war. Li claims demand is double BYD's supply capacity, a claim analysts view skeptically. The company is also navigating the Pentagon's 1260H military-affiliated designation, labour allegations at its Hungary factory, 100% US tariffs, and falling margins — even as exports surged 80% year-on-year to a record 160,644 units in May.