As the nation’s EV market is still being disrupted by intense pricing competition, Chinese electric car major BYD has reported another month of falling production and domestic sales.
BYD’s worldwide production dropped to 353,090 units in August, a 3.78% year-over-year decrease that was the first monthly decline since 2020. Additionally, domestic sales fell 14.3% from the same time last year, continuing the company’s four-month sales decline.
The extended downturn has jeopardized BYD’s yearly sales goal. Analysts have revised forecasts downward to about 4.9 million units for 2025 after the manufacturer reached just over half of its 5.5 million-unit target as of August.
BYD’s margins have been further pressured by the fierce price war among EV manufacturers. Despite revenue increasing 14% to RMB 201 billion in Q2 2025, net profit fell around 30% to RMB 6.4 billion, marking the company’s first quarterly profit decline in over three years.
While domestic challenges persist, BYD’s overseas expansion remains strong. The company has doubled its exports in the first seven months of the year and continues to expand production in Europe and other key markets.
The competitive situation may change in the upcoming months due to regulatory pushback against aggressive discounting, but analysts believe that BYD’s worldwide momentum may help overcome its declining performance in China.
