BYD’s September 2025 Sales Drop 5.5%, Breaking a 19-Month Growth Streak – What’s Next?

• Why Did BYD’s Sales Decline in September 2025?
• How Is BYD Adjusting Its Strategy?
• Is China’s EV Market Getting Boring?
• Where Is BYD Winning?
• What’s Next for BYD?
• Frequently Asked Questions

BYD, China’s electric vehicle giant, just hit a rough patch after 19 straight months of growth. September 2025 sales fell 5.5% year-on-year, signaling trouble in its home market as domestic demand weakens and government crackdowns on price wars intensify. But it’s not all doom and gloom—BYD’s overseas expansion is booming, with exports more than doubling. Here’s the full breakdown of what went wrong, what’s working, and where BYD goes from here.

Why Did BYD’s Sales Decline in September 2025?

For the first time in over a year and a half, BYD’s sales dropped. The automaker sold just over 396,000 vehicles in September 2025, a 5.5% decrease compared to the same period last year. Analysts point to two major factors: weakening domestic demand in China and stricter government regulations against aggressive price cuts. Feng Xiao, co-head of China industrial research at CLSA, put it bluntly: “BYD really doesn’t care about the domestic market anymore.” Instead of reigniting a price war, the company has chosen to “lie down” in China—focusing instead on international growth.

How Is BYD Adjusting Its Strategy?

BYD has slashed its 2024 sales target from an ambitious 5.5 million units to a more conservative 4.6 million. Li Yunfei, the company’s head of marketing, framed this as a MOVE toward “healthy and sustainable” growth. Earlier this year, BYD tried a massive discount push, but the Chinese government intervened, warning automakers to stop eroding profit margins. Now, BYD and competitors must balance pricing strategies while ensuring timely payments to suppliers—a tricky shift for an industry accustomed to discount-driven sales.

Is China’s EV Market Getting Boring?

Feng Xiao raised an interesting point: Chinese buyers might be growing tired of the same old designs. “The products get old… buyers are getting bored of the BYD logo and BYD looks,” he said. In a market flooded with flashy alternatives, brand fatigue could be a real issue. Meanwhile, rivals like Geely are surging ahead—reporting a 114% jump in EV and hybrid sales in the first nine months of 2025, far outpacing BYD’s 18% growth.

Where Is BYD Winning?

Overseas, BYD is crushing it. The company sold 96,000 vehicles in Europe and the UK between January and August 2025—nearly four times last year’s numbers. By August, it had captured 1.4% of the European market, according to Acea. Stella Li, head of BYD’s international operations, remains unfazed by the domestic slump: “We don’t worry too much. We just invest more in research and development.” Exports of battery EVs and plug-in hybrids more than doubled, reaching 700,000 units in the first three quarters of 2025.

What’s Next for BYD?

With Warren Buffett’s Berkshire Hathaway finally exiting its long-held stake in 2025, BYD is entering a new era. The company still dominates the affordable EV segment, offering cars from 55,800 yuan ($7,800) to a premium 1.7 million-yuan electric sports car. But as domestic challenges mount, its future may hinge on global expansion. One thing’s clear: BYD’s growth story isn’t over—it’s just getting more complicated.

Frequently Asked Questions

Why did BYD’s sales drop in September 2025?

BYD’s September 2025 sales fell 5.5% due to weakening domestic demand in China and government restrictions on aggressive price cuts, ending a 19-month growth streak.

How is BYD performing in international markets?

BYD’s overseas sales are booming, with exports more than doubling to 700,000 units in the first nine months of 2025. Europe and the UK saw particularly strong growth.

What is BYD’s revised sales target for 2024?

BYD lowered its 2024 sales target from 5.5 million to 4.6 million vehicles, focusing on sustainable growth rather than aggressive expansion.