BYD Faces Headwinds as Sales Momentum Slows

China's leading electric vehicle manufacturer, BYD, is confronting a challenging phase. Despite achieving a monthly delivery record in November, the company has now reported a year-on-year sales decline for three consecutive months. CEO Wang Chuanfu addressed shareholders at an extraordinary general meeting last Friday, acknowledging that past favorable market conditions had led to complacency within the company's marketing operations.

The intense price competition in China's EV sector is taking a financial toll. Although BYD generates approximately 60% of the profits among the country's 14 major automakers, its net profit for the first three quarters of 2025 fell by 7.55% to 23.3 billion yuan. The company itself contributed to the price war by offering aggressive discounts on its Seagull model. This strategy helped secure market share but has pressured profitability across the entire industry. Market researchers suggest that only 20 to 30 companies may survive the ongoing industry consolidation.

Key November Figures:
* 480,186 vehicles delivered – the highest monthly total for 2025
* A 5.25% decrease compared to the same month last year
* Annual forecast revised downward from 5.5 million to 4.6 million units, a reduction of 16%

Market Homogenization and Technical Challenges

CEO Wang cited multiple pressures. BYD's technological edge is having a diminished impact as products from different manufacturers become increasingly similar. Furthermore, customer concerns regarding charging speeds in cold weather are presenting additional hurdles. The competitive landscape was highlighted in September when rival SAIC Motor briefly surpassed BYD's monthly sales—a significant warning signal. Cumulative deliveries from January through November reached 4.18 million units, representing year-on-year growth of 11.3%, yet the pace of expansion is clearly decelerating.

Wang promised "substantial" new technologies would be unveiled soon, though specifics were not disclosed. He emphasized the company's foundation of roughly 120,000 engineers as key to restoring competitiveness. BYD plans significant investment over the next two to three years in electrification, intelligent systems, and charging capabilities.

Should investors sell immediately? Or is it worth buying BYD?

International Expansion Offers a Counterbalance

As the domestic market softens, BYD is accelerating its overseas push. The company is aggressively expanding in Europe, aiming to double its sales network to 2,000 locations by the end of 2026. Sales in the region more than tripled to 80,807 units in the first nine months of 2025.

In South Africa, BYD has fast-tracked its rollout, now planning for 35 locations by the end of the first quarter of 2026—a target originally set for the end of that year. The goal is to have 60 to 70 dealers operational by the close of 2026.

The company also marked a milestone in Japan, launching its first plug-in hybrid model, the Sealion 6 SUV, on December 1st at a price equivalent to $26,500. A new Seal 07 electric vehicle equipped with LiDAR sensors is also poised for release.

All eyes are now on December's delivery figures to see if BYD can reverse its downward trend. The company's fourth-quarter results, expected in late January 2026, will provide a clearer picture. Analysts currently project full-year earnings per share of 3.92 yuan on revenues of 852 billion yuan.