- China which boasts of the largest auto market, is accelerating toward an electric future as established global brands trail behind as automakers prepare for the Shanghai auto show starting Tuesday.
- China-made brands now lead in critical segments powered by new electric-drive models gaining share at home and overseas, Reuters reports.
- BYD Co, Ltd’s (OTC:BYDDF) (OTC:BYDDY) sales in China grew by 69% in 2023, winning an 11% share of the overall car market, more than Volkswagen AG (OTC:VWAGY) or Toyota Motor Corp (NYSE:TM).
- China’s passenger car sales were down 13% in the first quarter, per the China Passenger Car Association. But sales of EVs and plug-in hybrids were up 22%. Sales of internal-combustion vehicles were down by an almost equal margin.
- Volkswagen, General Motors Co (NYSE:GM), Honda Motor Co (NYSE:HMC), and Nissan Motor Co, Ltd (OTC:NSANY) lost in terms of sales and market share. More than 40 auto brands have followed Tesla Inc (NASDAQ:TSLA) in cutting EV prices since January in a price war that cut into industry-wide profitability, analysts say.
- BYD’s Song plug-in hybrid SUV outsold the Nissan Sylphy, China’s top-selling vehicle, for three years. BYD’s Dolphin EV was ahead of the Volkswagen Passat.
- Analysts say that plug-ins represent more than half of BYD sales this year, giving the company scale to compete on price across its line-up.
- Tesla saw a 27% growth in Chinese sales in the first quarter to just over 137,000 of its Model 3 sedans and Model Y crossovers. Tesla also increased its share after cutting China prices by 6% and almost 14% in January.
- “Gaining further share in the key China market will be the hearts and lungs of the Tesla growth story,” Wedbush analyst Daniel Ives said in a note on Monday.
- As a further threat to established brands, China’s exports are growing fast, led by EVs and PHEVs. Industry-wide exports from China were up 83% from a year earlier last quarter.
- BYD, which markets its cars in Europe and Southeast Asia, had a 13-fold increase in exports from China.
- Price Action: BYDDF shares traded higher by 0.65% at $28.55 on the last check Monday.
- Photo via Wikimedia Commons
Goldman Sachs Maintains Neutral on Warby Parker, Lowers Price Target to $16
Goldman Sachs analyst Brooke Roach maintains Warby Parker (NYSE:WRBY) with a Neutral and lowers the price target from $18 to $16.
