BYD Co., the world’s largest electric vehicle manufacturer, has reported a third consecutive month of sales decline. This slump comes amid intensifying competition from rival automakers in China.
The timing of the decline is particularly significant. The last quarter of the year is traditionally a peak sales season for the Chinese auto industry.
Consumers often hurry to make purchases before December 31, as this date marks the end of China’s full tax exemption for new energy vehicles. The ongoing decline in sales suggests that consumers may be growing tired of BYD’s current lineup. The company is facing increasing pressure across various market segments.
BYD is experiencing market share erosion in both mass-market and premium categories. Key competitors include Geely Automobile Holdings Ltd., with its revitalised model range, and tech giant Xiaomi Corp.
BYD’s sales fell for a third straight month as the world’s largest electric vehicle maker faces intensifying competition from rivals churning out popular models https://t.co/HfzXGtpiAt
— Bloomberg (@business) December 1, 2025Xiaomi’s successful entry into the automotive market, particularly with models like the YU7, is capturing significant consumer interest. To meet its reportedly adjusted full-year target of 4.6 million vehicles, BYD now needs to sell approximately 418,000 units in December alone.
The company’s financial performance has also weakened. Profits have declined in back-to-back quarters. BYD finds itself at the centre of broader industry adjustments in China. These include government efforts to rein in aggressive discounting practices, a strategy that has historically underpinned the company’s sales growth.
A rare positive note came from BYD’s overseas business. The company exported 131,935 vehicles, demonstrating strong international demand.
However, this export growth was insufficient to offset the weakening domestic sales. Furthermore, BYD’s global expansion faces significant external challenges. Rising trade barriers in key markets such as Europe and North America are limiting the company’s ability to shift sales away from the increasingly saturated Chinese market.
