BYD and Xiaomi Shares Rally as June EV Deliveries Ease China's Slowdown Fears

Shares of two of China's most-watched electric-vehicle makers jumped after June delivery figures pointed to a tentative rebound — a rare bright spot in an industry ground down by a brutal price war, overcapacity and government pressure to stop the race to the bottom.

Elias Rosen July 2, 2026 at 4:18 AM

A jolt of good news lifted China's electric-car stocks — even as the industry's deeper troubles remain in plain view.

The rally

BYD's Hong Kong-listed shares rose about 9 percent, rebounding from their lowest level since September 2024, after the company reported June sales of 403,472 new-energy vehicles, up roughly 5 percent from a year earlier, CnEVPost reported. Xiaomi's shares added more than 4 percent after it said its car deliveries topped 30,000 for a third straight month, the outlet reported, though the company did not give a precise figure. Rivals Li Auto and Leapmotor also gained.

Exports carry BYD

The standout number was BYD's overseas sales: a record 175,349 vehicles in June, nearly double a year earlier and around 43 percent of the month's total — a shift driven by weakening demand at home, where BYD's domestic sales fell more than 20 percent year on year. For the first half of 2026, BYD's total sales were down almost 16 percent even as its overseas business jumped about 71 percent, per CnEVPost. Its second-quarter fully electric sales were strong enough to retake the global battery-EV lead from Tesla, according to figures reported by Electrek.

Growth at a cost

The delivery gains sit atop a bruising backdrop. Xiaomi, expanding fast toward a 550,000-vehicle target for the year, was losing roughly $5,600 on every car it sold in the first quarter, according to CarNewsChina — a reminder that market share in China's EV sector is being bought at steep cost. BYD's chairman has described the industry as entering a "brutal knockout stage," and its finances have tightened after years of easy growth.

The root problem is overcapacity: Chinese plants can build far more vehicles than the domestic market can absorb, as CKGSB Knowledge has detailed, fueling a price war Beijing has labeled "involution" and urged manufacturers to rein in. Government subsidies have kept weaker automakers alive rather than forcing the shakeout many analysts expect.

A market closed to Americans

For U.S. and California readers, the caveat is that none of this is available at home: BYD and Xiaomi vehicles are effectively shut out of the American market by tariffs on Chinese-made EVs that have reached punitive levels. BYD's growth has instead flowed to Europe, Southeast Asia and Latin America — where its low prices and state backing have, in turn, drawn the kind of scrutiny now playing out in the EU's own trade fight with Beijing.