BYD Lowers 2025 Sales Target Amid Rising Competition
Hong Kong, Thursday, 4 September 2025.
BYD reduced its 2025 vehicle sales target by 16% to 4.6 million vehicles, reflecting increased competition and a 30% drop in quarterly profit, signaling challenges in the EV market.
BYD’s Revised Sales Projections
In a strategic move reflecting the complexities of the current automotive market, BYD Company Limited (ticker: BYDDF) has announced a significant reduction in its sales target for 2025. The target has been adjusted downward by 16% from the initial 5.5 million vehicles to 4.6 million units. This decision comes amidst rising competition from other Chinese automakers such as Geely Auto and Leapmotor, and follows a notable 30% decline in BYD’s quarterly profits, the first in over three years [1][2][3].
Market Dynamics and Competitive Pressures
The revised sales target not only highlights competitive pressures but also signals a potential shift in BYD’s growth trajectory. Geely Auto, one of BYD’s primary competitors, has increased its 2025 sales target from 2.71 million to 3 million vehicles, reflecting robust sales performance and an aggressive market stance. This competitive environment has been compounded by Geely’s impressive sales figures, such as a 172.59% year-on-year increase in August sales through its sub-brand Geely Galaxy [2][3][4].
Implications for the EV Market
BYD’s decision to cut its sales target is indicative of broader challenges within the electric vehicle (EV) sector. Analysts suggest that this move is a wake-up call for investors, as structural issues such as overcapacity and intense price competition are becoming more pronounced. The Chinese government’s recent directives urging manufacturers to curb production and stabilize the sector further underscore the shifting dynamics in the EV market. This environment has prompted BYD to pivot its strategy towards hybrid models and localized production to mitigate the impact of international tariffs and domestic market saturation [3][4][5].
Future Outlook and Strategic Adjustments
Looking forward, BYD’s strategic adjustments, including slowing domestic production and delaying new plant expansions, are aimed at sustaining its market presence amidst evolving economic conditions. The company’s revised target still represents a 7% increase from 2024, albeit slower than previous years, reflecting a normalization of growth. Despite the challenges, BYD remains a significant player in the global EV landscape, with its historical growth underscored by a tenfold increase in sales of electric and plug-in hybrid vehicles between 2020 and 2024 [1][4][5].