China BYD Posts Weakest EV Sales Growth in Five Years | January 2026

China’s BYD Posts Weakest Sales Growth in Five Years Amid Domestic Headwinds

Beijing | January 1, 2026 — China’s leading electric vehicle manufacturer, BYD, reported a slowdown in its sales growth for 2025, registering only 7.73% growth, marking the weakest increase in five years. According to the company, intensified domestic competition and technical challenges were key factors behind the slowdown.

BYD sold a total of 4.6 million vehicles (4,602,436 units) in 2025, but growth rates were lower compared to the previous year. The company also cut its annual sales target by 16% to approximately 4.6 million units, citing declining domestic demand and increasing market competition.

In December 2025, BYD’s monthly sales fell 18.3% year-on-year, representing the steepest drop in almost two years. This marked the fourth consecutive month of declining sales, indicating sustained pressure in the domestic market.

Analysts point out that new budget EV brands such as Geely and Leapmotor have intensified competition, particularly in the affordable electric vehicle segment. As a result, BYD’s technological edge has weakened, influencing consumer preferences and purchase decisions.

BYD Chairman Wang Chuanfu acknowledged the situation and stated that the company will introduce major technological innovations in 2026, though specific details about these plans were not disclosed.

Despite BYD’s strong performance in previous years, 2025 proved to be a turning point. Slowing domestic demand and mounting competition constrained the company’s growth, though global market performance showed some improvement.

Interestingly, BYD’s overseas sales reached a record high, accounting for nearly 20% of total sales, up significantly from the previous year. The company is now increasingly focusing on international markets to offset the slowdown in domestic demand.

Financial experts believe that if BYD introduces advanced technology, better battery systems, and innovative models in 2026, it could strengthen its domestic position and compete more effectively on the global stage. Senior company officials also emphasized that major strategic changes are underway to regain market share.

China’s electric vehicle market has become extremely fast-paced and competitive, with numerous startups expanding rapidly both domestically and internationally. For BYD, it is crucial to adapt its technology, design, and pricing strategies to meet future market demands.

Overall, BYD’s weakest sales growth in five years highlights the increasing competition in China’s new energy vehicle (NEV) market and evolving consumer preferences. Analysts believe that the company’s decisions and new model launches in 2026 will be critical in determining its market position.