BYD CEO Addresses Sales Decline in China: A Transparent Reflection
Wang Chuanfu, the president and CEO of BYD, has recently unveiled the reasons behind the company’s downturn in sales within the competitive Chinese market. Speaking candidly during a shareholders meeting in Shenzhen on December 5, Wang highlighted a concerning loss of technological edge that had previously set BYD apart from its rivals. He noted a significant reduction in the ‘wow factor’ that typically garners consumer interest, drawing attention to the waning innovation that once characterized the brand.
The Underlying Issues
According to the China Securities Journal, Wang pinpointed two primary factors responsible for the sales decline. Firstly, the diminishing technological advantage has lowered the impact of BYD’s products, rendering them less surprising and engaging for customers. Secondly, unresolved practical issues linger, particularly concerning the slow charging capabilities of their vehicles in colder climates—a critical drawback for potential buyers in certain regions of China.
Sales Numbers Reflect a Decline
In November 2025, BYD reported sales of 480,186 new energy vehicles, marking the highest monthly figure for the year. However, this represents a 5.25% decline compared to November 2024. Notably, domestic sales plummeted by 26.81%, indicating ongoing challenges in the local market. Conversely, exports surged past 100,000 units for the first time, reaching 131,700 vehicles, and showcasing a remarkable 297% increase. This shift emphasizes the importance of foreign markets for BYD as it navigates the complexities of the Chinese automotive landscape.
Heightened Competition
The competitive landscape is evolving rapidly, with local companies like Geely, Changan, and Chery bolstering their market presence through efficient hybrids and more affordable electric models. This intensifying competition is eroding BYD’s market share and complicating efforts to stand out in an increasingly homogenized industry. In September 2025, rival SAIC Motor even surpassed BYD in monthly sales, illustrating the pressing challenges being faced.
BYD’s Strategic Response
In response to these concerns, Wang hinted at imminent announcements regarding “heavy technologies,” though specifics were not disclosed. He emphasized BYD’s strengths—particularly its pool of approximately 120,000 engineers—as vital for regaining its technological leadership. The organization is committed to deepening its investments in electrification and smart technologies over the next few years.
A Moment of Self-Criticism
Wang’s admission extends to recognizing a level of complacency that emerged during favorable market conditions in the past few years. This acknowledgment of previous shortcomings in marketing and merchandising strategies underscores the need for BYD to recalibrate its approach and innovation.
Future Outlook
As BYD re-evaluates its sales targets for 2025, reducing their goal from 5.5 million vehicles to around 4.6 million, the implications of these adjustments are significant. Reports indicate that from January to November, the company sold 4,182 million units, achieving 90.9% of this revised target. This growth—though respectable at 11.3% year-on-year—pales in comparison to the exponential growth rates witnessed in prior years (218% in 2021, 209% in 2022, etc.).
Stella Li, BYD’s vice president, has teased upcoming announcements that promise to reshape the company’s trajectory, leaving industry observers eager to see how the manufacturer plans to counteract fierce competition and regain its market standing.
In sum, BYD’s transparency concerning its struggles highlights an important phase in the company’s evolution. With a commitment to innovation and strategic recalibration, the future remains to be seen, but one thing is clear: the competition isn’t letting up.