Tesla Rival BYD Hits the Brakes Amid China’s Shifting EV Landscape

China’s electric vehicle giant BYD is scaling back production and expansion plans as demand wanes in a challenging macroeconomic environment. The company, which overtook Tesla as the world’s largest EV manufacturer in 2024, now faces rising inventories and fierce competition domestically.

BYD sold 4.27 million vehicles in 2024, primarily in China, but its 2025 target of 5.5 million appears increasingly out of reach. With just 1.76 million units sold in the first five months of the year, the automaker has slowed existing production and delayed new manufacturing lines.

The slowdown reflects broader pressures in China’s EV market, where a price war and economic headwinds are dampening growth. BYD’s strategic retreat marks a significant shift for the company that had been aggressively expanding through affordable models and price cuts.