BYD Slashes Sales Target Amid Mounting Competitive Pressure

BYD has sharply revised its 2025 sales target downward from 5.5 million to 4.6 million vehicles, signaling deepening challenges for the Chinese electric vehicle maker. The adjustment follows a 30% quarterly profit decline and stagnant delivery growth, with July-August figures mirroring 2023 levels.

Domestic competitors are eroding BYD's market position through aggressive pricing strategies, offering tech-laden models at lower price points. Geely, Xpeng, and surprise entrant Xiaomi—with its SU7 sedan and YU7 SUV—are capturing consumer attention through superior value propositions.

Regulatory constraints have compounded BYD's difficulties. Beijing's crackdown on price-cutting practices has removed a key competitive tool, forcing the company to compete on product merits alone during the critical September-October sales period. Investor confidence has wavered, reflected in a 2% share price drop at Thursday's Hong Kong market open.