This article first appeared on GuruFocus.
China’s BYD (BYDDF) had a slower October, with sales slipping 12% from a year ago to 441,706 vehicles. It’s the second straight month of weaker numbers for the EV giant, showing how China’s once red-hot electric car market is beginning to cool.
Most of the weakness came from its plug-in hybrids, where sales tumbled around 31%. Battery-electric models, on the other hand, held up better rising 17%, according to data from CnEVPost. BYD’s commercial new energy vehicles, including buses and trucks, were a rare bright spot, jumping 128% year-over-year to 4,850 units and up 5% from September.
The softer sales follow a tough earnings season for BYD. The company’s Q3 profit plunged 33%, hit by China’s intensifying price wars and relentless competition from Tesla and local challengers. Analysts say those pressures could keep weighing on margins in the near term. Investors will now be watching November’s numbers for any sign that BYD’s slowdown is bottoming out.