China's auto industry climate monitoring report for the third quarter of 2010

According to the sales data of narrow passenger vehicles of the Federation of Travel Unions, in January-July 2010, BYD’s cumulative sales exceeded Chery and became China’s narrowest-selling auto brand’s own-brand car maker. However, in August and September, sales of BYD fell by 19.1% and 24.9% year-on-year, respectively, causing its cumulative sales in the first two months and January-August and January-September to fall from the position of its own brand.

In fact, starting from April, sales growth of BYD is basically in a downward trend. Among them, June is a turning point. Prior to this, sales growth of BYD declined, but it fell to 38% when it fell to May, but dropped to 3.2% in June. In August and September, it further evolved into more and more negative growth.

According to the average growth rate of China's narrow passenger car industry, it can be found that BYD’s cumulative sales growth from January to September was only 32.7%, which is lower than the industry average of 39%. From a single month’s point of view, the company’s sales growth rate has been below the industry average for four months in a row – from June to September, especially the decline of around 20% in BYD in August and September and around 20% in the entire market. The growth is in stark contrast.

From the model point of view, from August this year, BYD's main models have begun to decline significantly. Sales of the BYD F3 sedan and F6 fell 45.8% and 49.1%, respectively, to 11,934 vehicles and 1,858 vehicles. Only the F3 hatchback and F0 increased by 2.6% and 11.8% to 2,729 vehicles and 11,209 vehicles respectively.

In September of this year, the F3 hatchback also joined BYD's declining sales model camp. The F3 hatchback sales for the month decreased 25.4% year-on-year to 2,999 units; F3 sedan sales fell 49% year-on-year to 11,890 units; F6 sales fell 59.6 year-on-year to 2,308 units. Only F0 grew – it increased by 14.7% in September to 12,615 vehicles.