Chinese electric vehicle maker BYD reported its weakest annual sales growth in five years, with year‑end figures showing a 7.73 per cent increase to 4.6 million units in 2025. The slowdown reflected mounting competition at home and signs that the company’s technological lead in some areas has narrowed.
BYD sales growth shows slowdown at home
Sales fell sharply in December, down 18.3 per cent from a year earlier, extending a run of monthly declines to four and marking the largest single‑month drop in nearly two years. BYD had earlier trimmed its 2025 sales target by 16 per cent after domestic volumes weakened from July amid intensified rivalry in the budget segment from makers such as Geely and Leapmotor.
Company chairman Wang Chuanfu attributed part of the slowdown to a waning technological edge, according to Chinese media reporting on remarks he made at an investor conference in December. Wang said BYD would roll out significant innovations during 2026 but offered no further detail.
Efforts to retain market share included introducing advanced driver assistance features on low‑priced models and launching cars with ultra‑fast charging technology. Nevertheless these moves have not stopped erosion of market share, and a major round of price cuts across more than 20 models in May triggered a wider selloff in China’s auto sector.
To preserve cash and recalibrate growth, BYD has slowed production and delayed some capacity expansion plans. In a notable change to its supplier relations, Reuters reported that BYD told some parts makers it would move away from using in‑house financial notes for payments, a mechanism critics said previously disadvantaged smaller suppliers.
Despite domestic headwinds, BYD recorded a spectacular rise in overseas deliveries, which climbed 150.7 per cent to a record 1,046,083 units in 2025. The company has set an ambitious goal to sell up to 1.6 million cars outside China in 2026, underscoring a strategic pivot to international markets to offset weakness at home.
The overseas expansion helped lift BYD’s electric vehicle deliveries to 2.26 million units, a year‑on‑year increase of 27.9 per cent and enough for the company to potentially outsell Tesla in annual EV deliveries for the first time. Tesla’s deliveries were expected to fall to about 1.64 million vehicles in 2025, reflecting differing product and pricing strategies between the two firms.
Market analysts say BYD’s aggressive push abroad, combined with its broad product range from budget models to higher‑end offerings, will keep it central to competition in global EV markets. For China, the company’s international growth supports export revenues and the country’s industrial influence, even as it navigates tougher competition and profitability pressures domestically.
Investors and industry watchers will be watching whether BYD’s promised 2026 innovations and its overseas momentum are sufficient to restore stronger growth at home and sustain margins, while the company rebalances production and supplier arrangements amid a more contested domestic market.
Key Takeaways:
- BYD sales growth slowed to 7.73% in 2025, with December falling 18.3% year on year.
- Overseas deliveries jumped 150.7% to 1,046,083 units, helping offset weaker domestic demand.
- Price cuts, production slowdowns and supplier payment changes trimmed margins but the company plans major innovations in 2026.
- BYD sales growth and export momentum position it to outsell Tesla in annual EV deliveries, shifting the competitive balance.
