BYD, China’s leading electric vehicle maker, reported its first monthly sales decline in 19 months in September, as domestic demand cooled and regulators clamped down on aggressive price competition, the Financial Times reports.
The Shenzhen-based company sold just over 396,000 vehicles last month, down 5.5 per cent from a year earlier, according to a Hong Kong stock exchange filing. The decline ended a growth streak that began in February 2024 and adds pressure on the Tesla rival to expand its overseas operations.
“BYD really doesn’t care about the domestic market any more,” said Feng Xiao, co-head of China industrial research at CLSA. He estimated that profits from exports could account for more than half of the company’s earnings for the first time next year. “Rather than cut prices and risk regulatory penalties, BYD chose to lie down in China.”
The company recently revised its internal annual sales target from 5.5 million to 4.6 million units, a move marketing chief Li Yunfei described as “healthy and sustainable.” The decision follows a regulatory crackdown triggered by BYD’s discounting spree in May, which ended a multi-year price war that had eroded industry profits. Since then, BYD and its rivals have refrained from aggressive price cuts and ensured timely payments to suppliers.
Analysts note that Chinese consumers are awaiting a refreshed BYD model lineup. Feng of CLSA said: “The products get old and established buyers are getting bored of the BYD logo and BYD looks.”
Despite the slowdown at home, BYD’s international expansion has been strong. Sales in Europe and the UK nearly quadrupled to 96,000 vehicles in the first eight months of 2025, giving BYD a 1.4 per cent market share in August, according to European car industry body Acea. Exports of battery-powered vehicles and plug-in hybrids more than doubled to over 700,000 units in the first nine months of the year.
Stella Li, BYD’s vice-president for overseas business, told the Financial Times that overall profits remain robust despite short-term sales dips. “We don’t worry too much. We just invest more in research and development,” she said.
For the January-to-September period, BYD’s total sales rose 18 per cent to 3.2 million vehicles, lagging behind rival Geely, which saw a 114 per cent increase in EV and hybrid sales. Meanwhile, Warren Buffett’s Berkshire Hathaway, an investor in BYD since 2008, completed its exit from the company this year after gradually selling down its stake.
