BYD slows down: Chinese electric giant forced to revise estimates
Excess supply, price war, fierce competition and sluggish demand: this is how the company cut its 2025 forecast by 16%.
2' min read
2' min read
What is happening to BYD? The Chinese automotive giant has apparently been forced to slow down. And it has drastically reduced its sales target for 2025. The new estimate is 4.6 million vehicles, a 16% cut from the original forecast of 5.5 million. A decision, reported by internal company sources, that is a clear slowdown for the Chinese electric car giant, struggling with its slowest growth phase in five years.
The new sales target, if confirmed, would represent growth of just 7 per cent over last year: a much more modest pace when compared to the dizzying expansion of recent years, when sales of pure electrics and plug-in hybrids increased tenfold between 2020 and 2024, reaching 4.3 million units.
And while it is true that growth of that level is also not sustainable due to a question of market saturation, the slowdown remains heavy. And it is also reflected in the accounts. Last week, BYD announced a 30% drop in quarterly profits, the first retreat in over three years. A signal that also had immediate effects on the market, where the Chinese company's stock has lost around 10% in the last five days.
According to international agencies, the new sales target was communicated last month within the company and to selected suppliers to guide production planning. This also means that it remains a target that is subject to further changes depending on market developments.
But it certainly makes wider reading, because it comes in an increasingly competitive environment. BYD - it should be remembered - has always dominated the electric car sector in China. This success is due to the good quality of its cars, but above all to very aggressive pricing. Recently, however, it has come under increasing pressure from rivals such as Geely Auto and Leapmotor. And looking at July's figures, it seems no coincidence that while BYD recorded a 9.6% drop in sales of its economy cars (those under 150,000 yuan, around $21,000), Geely saw a 90% jump year-on-year in the same segment.
