As BYD and Geely hit sales highs, pressure mounts on China’s smaller carmakers

Sales momentum among leading carmakers contrasts with a domestic market downturn that is accelerating industry consolidation, analysts say

Daniel Renin Shanghai

BYD and Geely Auto, recorded their strongest monthly sales of the year in October, bucking a downward trend in the world’s largest automotive market as smaller rivals come under increasing pressure to turn a profit.

Shenzhen-based electric vehicle (EV) giant BYD handed over 490,168 cars to customers at home and abroad last month, up 11 per cent year on year, while Hangzhou-headquartered Geely delivered 310,183 petrol and electric cars worldwide in the same period, up 1 per cent from a year earlier, according to company statements.

“Top players, banking on their new models and advantages in cost and technology, showed their resilience in sales,” said Gao Shen, an independent analyst in Shanghai. “Their sales rises have ratcheted up pressure on weak carmakers that are struggling to survive [in a fiercely competitive] domestic market.”

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