<div id="readability-page-1"><div>CHINESE automaker Geely Automobile Holdings sold more vehicles than BYD for a second consecutive month, piling pressure on the latter to beef up its lineup and reignite waning demand for electric vehicles (EVs).In the first two months of this year, Geely delivered about 76,000 units more than BYD, which saw a 36 per cent slump in the period, according to company filings. The last time Geely, founded by billionaire Li Shufu, had more shipments than BYD for at least two consecutive months was in 2022. Geely’s flat sales to start the year are comparatively strong as some of China’s most popular brands, including BYD and Xpeng, report double-digit declines in monthly deliveries. The world’s biggest auto industry is struggling to maintain momentum as the winding down of key purchase incentives hurts demand, while the beginning of the year was also affected by a longer-than-normal Lunar New Year holiday. Geely’s growing lead over BYD shows that a major restructuring to streamline its brands is bearing fruit. Geely has won over drivers with a number of its models, including the compact Xingyuan hatchback, which became the best-selling car in China last year. Meanwhile, BYD, which overtook Tesla last year to become the world’s biggest EV maker, faces growing pressure to navigate a domestic sales slump. Chief executive officer Wang Chuanfu said at a company event in December that the technological lead the company enjoyed has diminished as rivals started to catch up, hurting sales.That makes this week’s launch of new EV technologies crucial for the carmaker. Investors are optimistic that it will unveil upgrades of charging technology and driver-assistance features that will reinvigorate Chinese consumers that have been waiting for new products rather than buy BYD’s existing lineup.Exports remain a bright spot for BYD in a boost to its earnings outlook, as the higher margins the carmaker can command abroad make up for the cutthroat price war happening at home. Overseas sales climbed more than 50 per cent to 201,082 cars in the first two months of this year. Geely isn’t far behind, though, with 181,891 units in the same period. With the first two months of the year being a typically volatile period for sales due to the New Year holiday, attention is turning to the strength of demand in March. Carmakers, including Tesla, BYD, Nio and Xiaomi, are rolling out ultra-long-term financing programmes, including some that stretch as long as seven to eight years with low or zero interest rates. That method is aimed at enticing consumers without attracting the regulatory scrutiny that comes with outright price cuts.While those measures may help prop up short-term volumes, they threaten to further erode already thin margins and risk diverting capital away from carmakers’ research and development initiatives or overseas expansion plans. BLOOMBERG</div></div>

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Geely Automobile Holdings has surpassed BYD in vehicle sales for the second consecutive month, with a gap of approximately 76,000 units in the first two months of the year. This marks the largest sales lead since 2022, as BYD faces a 36% decline in sales. Geely's success is attributed to its popular models, while BYD is under pressure to innovate and improve its lineup. Despite domestic challenges, BYD's exports have surged over 50%. The automotive industry is adapting with long-term financing options to boost sales amid a competitive market.

- Geely Automobile Holdings outperformed BYD in vehicle sales for two consecutive months, delivering about 76,000 more units amid BYD's 36 percent drop in sales.  
- The decline in demand for EVs due to waning purchase incentives and a longer Lunar New Year holiday has put pressure on BYD to innovate, especially with the upcoming launch of new EV technologies.  
- While BYD's exports surged by over 50 percent, Geely is close behind, indicating a competitive market where financing programs are introduced to boost sales without compromising margins.

Geely extends lead over BYD with biggest sales gap since 2022