Major media reports indicate BYD's annual sales rose to a record $116 billion in 2025, but its annual profit fell 19% to 32.6 billion yuan ($4.7 billion), representing its first profit decline since 2021. The company has reported six straight months of declining sales, with total sales in January-February 2026 falling 36% year-on-year to 400,241 units, according to major media. Higher overseas sales did not offset persistent weakness in BYD's domestic demand, which has been hurt by a fierce price war in China that has damaged profitability. Rivals such as Geely Auto were gaining ground in early 2026, and wide-reaching government subsidies for EVs in China have been extended but scaled back in 2026, though the exact impact on BYD's sales and profitability remains unclear. BYD Chairman Wang Chuan-fu stated in an official release that competition in the NEV (new energy vehicle) industry has reached a fever pitch and is undergoing a brutal 'knockout stage', according to major media.
In early March 2026, BYD launched a new generation of the powerful 'blade' EV battery that can achieve a nearly full charge in nine minutes, according to major media. The company also introduced new car models such as the new Datang SUV installed with its latest technologies. Analysts cited by major media suggest that meaningful technology upgrades may be the key for BYD to regain markets, though how the new 'blade' battery compares to competitors' offerings in terms of cost and performance is not detailed in available reports.
They cannot rely on mass market EVs to help them keep the same volume that they were selling.
Globally, 20.7 million light plug-in vehicles were sold in 2025, 20% more than the previous year, with China selling 12.9 million plug-in vehicles (+17%), Europe 4.3 million (+33%), North America 1.8 million (-4%), and the rest of the world 1.7 million (+48%), according to major media. BYD reported sales of 2.26 million electric cars and 2.29 million plug-in hybrids in 2025, overtaking Tesla as the world's biggest EV maker. Tesla delivered 1.64 million vehicles in 2025, down 9%, with full-year revenue of $94.8 billion, according to major media. Chinese Geely sold 1.24 million plug-in vehicles in 2025, highlighting the competitive landscape.
External factors are also shaping the EV market. Higher oil and gasoline prices due to the Iran war are starting to recharge interest in renewable energy, according to major media. Expectations are that the Iran war and the global energy shock would push more people to switch to EVs, though specific drivers of BYD's domestic sales decline beyond the price war are not fully identified.
We also recognize that competition in the NEV (new energy vehicle) industry has reached a fever pitch, and is undergoing a brutal 'knockout stage'.
BYD has been expanding into global markets including Latin America and Europe, where profit margins are typically higher than in China, according to auto analysts cited by major media. However, analysts foresee a tough road ahead for BYD this year. According to The Independent - Main, Chris Liu, a Shanghai-based senior analyst at advisory group Omdia, described that BYD cannot rely on mass market EVs to help them keep the same volume that they were selling. BYD shares traded in Hong Kong have fallen more than 20% over the past year but have been rising in March 2026, though detailed financial projections for BYD in 2026 given the current challenges are not available. It remains uncertain how much BYD's overseas sales have increased and which markets are growing the fastest.