Asger RisomChina’s largest electric vehicle manufacturer, BYD, is facing growing pressure in its domestic market. As rivals surge ahead and price wars escalate, the automaker is being urged to expand internationally to protect its profits.
China’s largest electric vehicle manufacturer, BYD, is facing growing pressure in its domestic market. As rivals surge ahead and price wars escalate, the automaker is being urged to expand internationally to protect its profits.
Profits slide nearly 12% through September
BYD reported a net profit of 20.49 billion yuan (€2.46 billion) in the first nine months of 2025 — an 11.6% decline from the same period last year, largely due to increasing competition in China’s EV sector.
Q3 performance shows sharper drop
The company’s Q3 profit fell 36.6% year-over-year to 6.89 billion yuan (€838 million). It also saw a 3% decline in quarterly revenue, totaling 194.98 billion yuan (€23.71 billion).
EV sales dip slightly
BYD sold 1.15 million new energy vehicles in the third quarter, a 1.8% drop compared to 2024. It’s a rare setback for the global leader in plug-in vehicle production.
Rivals race ahead
While BYD’s momentum slowed, competitors surged. Geely boosted sales by 96%, and Changan rose 84% in China — intensifying market share pressures.
Domestic oversupply triggers price war
A price war among Chinese EV makers has destabilized the market. In response, the Chinese government is urging automakers to shift surplus inventory abroad.
Sales target revised downward
BYD lowered its 2025 sales forecast by 16%, setting a new target of 4.6 million units. The cut reflects the growing challenges of sustaining growth at home.
Knocked from the top spot
In September, BYD lost its position as China’s top-selling automaker to SAIC Motor, the parent company of MG — which has seen increasing success in Europe.
Nine-month revenue falls nearly 13%
Total revenue for the first three quarters dropped 12.75% to 566.27 billion yuan (€68.88 billion), pointing to broader pricing and demand challenges.
Government urges export expansion
To avoid domestic deflation and protect manufacturers, Beijing is pushing companies like BYD to grow abroad — turning export markets into a critical strategy.
Europe plays a central role
BYD is eyeing Spain for its third European plant. Strengthening its presence on the continent could help the automaker offset home market pressures.
Global strategy will shape BYD’s future
As China’s EV landscape grows more crowded, BYD’s ability to pivot internationally and streamline operations will be key to preserving its global lead.
