China’s largest electric carmaker, BYD has reduced its 2025 sales target by about 16%, signaling the company’s slowest growth pace since 2020. The revised goal of 4.6 million vehicles, down from more than 5.5 million, reflects mounting pressure in the world’s most competitive electric vehicle (EV) market, according to a Reuters report on September 4, 2025.
The cut comes as BYD faces its first quarterly profit decline in years, with earnings slipping by nearly 30%. Vehicle production has been weakening over the summer, with August output down 3.78% year-on-year and domestic sales falling 14.3%.
BYD has slashed the prices on 22nd models, for discounts price as steep as 34%. While the price cuts have stimulated demand, they have also squeezed the company’s profit margins. Adding to the strain, dealer inventory levels remain above three months of supply, well above the industry average, pointing to sluggish turnover.
In response, the automaker has suspended certain factory expansion projects and even halted night-shift production, signaling a cautious outlook.
Despite challenges at home, BYD is doubling down on its global expansion strategy. The company has rolled out its own truck fleet and plans to open new factories overseas, with the ambition that half of its future sales will come from international markets.
Industry analysts say BYD’s sales downgrade underscores a major shift in China’s EV landscape, as intensifying competition, price wars, and cautious consumer spending reshape the market dynamics.
