Core Viewpoint - The increase in Geely's sales target for 2025 to 3 million units raises questions about BYD's ability to meet its sales goal of 5.5 million units, especially given recent declines in domestic sales [1]. Sales Performance - BYD's domestic sales have seen a continuous year-on-year decline over the past two months, excluding overseas market impacts [2]. - In June, BYD sold 292,500 vehicles domestically, a decrease of 22,000 units compared to the same month last year, marking the first non-seasonal month-on-month decline [3]. - For the first half of the year, BYD sold a total of 2.146 million vehicles, requiring a year-on-year growth of over 26% in the second half to meet its annual target [5]. Market Competition - The market competition has intensified, with brands like Geely's Galaxy launching strong models that have impacted BYD's sales [6][32]. - BYD's strategy of "universal intelligent driving" has not yielded the expected results, leading to concerns among dealers and the capital market [4][6]. Inventory and Sales Strategy - BYD's dealers have a high inventory coefficient of 3.21, indicating that existing stock can last over three months without new vehicle arrivals [18]. - The focus on clearing inventory has shifted dealer priorities away from promoting new "intelligent driving" models [17][20]. Intelligent Driving Initiative - BYD's "Tian Shen Zhi Yan" intelligent driving system was introduced at a low price point, but consumer response has been lukewarm due to a lack of strong demand for such features in the mass market [12][16]. - Despite significant investment in intelligent driving technology, BYD has struggled to establish a strong market presence compared to competitors like Xiaopeng [22][23]. Production Adjustments - Reports indicate that BYD has begun reducing production and canceling night shifts at several domestic factories due to declining sales [36]. - Some component factories have also shifted to a five-day, eight-hour work schedule, reallocating workers to support other business areas [37]. Future Outlook - BYD's growth strategy heavily relies on maintaining scale, cost efficiency, and technological advancement, as emphasized by its founder [38]. - The company aims to achieve a sales target of 4.272 million vehicles by 2024, surpassing Tesla and becoming the global leader in new energy vehicle sales [39]. - Despite challenges in the domestic market, BYD's export volume reached 464,000 units in the first half of the year, reflecting a year-on-year increase of 128.6% [40][43].