As Nio, Xpeng Struggled, Warren Buffett-Backed BYD Saw EV Sales Jump 21.5% Month-Over-Month In August

The Shenzhen-based, Chinese automaker BYD Co’s BYDDF all-electric vehicle sales rose more than three-folds in August helped by rising demand for electric vehicles and even as key rival Nio Inc NIO struggled to cope up with semiconductor shortages. 

What Happened: BYD, which is backed by Warren Buffett-led Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), sold 30,382 battery-powered electric vehicles in August, a jump of nearly 223% year-over-year. On a sequential basis, the growth was 21.5%.

BYD’s new energy vehicles sales jumped more than four-fold to 61,409 units in August from a year ago.

The NEV category in China comprises plug-in electric vehicles eligible for public subsidies and includes plug-in hybrid electric vehicles and fuel cell electric vehicles besides the battery electric vehicles (BEVs). 

See Also: Warren Buffett-Backed BYD Sold More EVs In July Than Nio, Xpeng, Li's Combined Deliveries

BYD’s NEV portfolio consists of cars, buses, and trucks. The automaker’s battery-powered electric vehicles compete with those of homegrown Chinese electric vehicle rivals such as Nio, Li Auto Inc LI, and Xpeng Inc XPEV and also Tesla Inc TSLA.

BYD's gas-powered vehicle sales fell 67% to 7,122 vehicles in August. The decline was led by a sharp drop in SUVs where sales fell 61% to 5,386 vehicles. 

Why It Matters: BYD’s sales jump comes at a time when rival Nio is seeing a slump due to semiconductor shortages. 

Last week, Nio cut its third-quarter delivery guidance after reporting a 25.8% month-on-month decline in deliveries due to supply chain constraints. 

BYD, which reports sales volume unlike key homegrown rivals that report delivery numbers, had said last month profitability is affected to some extent by factors including rising prices of raw materials.

In comparison, XPeng delivered 7,214 electric vehicles in August, down 10.3% sequentially, and Li Auto delivered 9,433 vehicles, up 9.8% month-over-month.

Price Action: BYD shares closed 2.27% lower at $65.60 on Friday.

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