BYD’s Milestone Year: A Record Tempered by Domestic Headwinds

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The Chinese automotive giant BYD has officially released its final 2025 figures, cementing a significant shift in the electric vehicle (EV) landscape. The data confirms the company has overtaken Tesla in pure battery-electric vehicle (BEV) sales for the first time. However, a concurrent slowdown in its home market growth casts a shadow over this achievement, revealing the intense competitive pressures within China.

For the full year 2025, BYD reported sales exceeding 4.6 million New Energy Vehicles (NEVs), which represents a year-on-year increase of 7.73%. This total encompasses both pure electric models and plug-in hybrids (PHEVs).

The momentum, however, showed clear signs of fading as the year closed. December 2025 sales dropped by 18.3% compared to the same month a year prior, falling to approximately 420,000 units. This marked the fourth consecutive month of declining domestic deliveries, signaling increasing market saturation and fierce competition from rivals such as Geely and Xiaomi.

Key 2025 Performance Metrics:

• Total NEV Sales: 4.6 million (+7.73% year-on-year)
• Battery-Electric Vehicles (BEV): 2.26 million units (+27.9%)
• Export Volume: 1.046 million vehicles (+150.7%)
• December 2025 Sales: Down 18.3% year-on-year
• Plug-in Hybrids (PHEV): Annual decline of 7.91%

A New Leader Emerges in the BEV Segment

The 2025 results solidify a decisive change in the industry's competitive order. With 2.26 million pure electric cars sold, BYD has moved ahead of Tesla, which is estimated to have delivered around 1.65 million vehicles for the year.

This outcome validates BYD's volume-driven strategy. While Tesla contended with an estimated 8% sales decline and an aging model lineup, BYD leveraged its vertically integrated manufacturing capabilities to significantly increase deliveries despite a challenging economic climate in China.

Soaring Exports Counterbalance Domestic Weakness

The most explosive growth occurred outside of China. As domestic figures softened in the final quarter, international shipments surged by 150.7% in 2025 to reach 1.046 million vehicles. Deliveries abroad more than doubled in December alone, exceeding 133,000 units.

This aggressive international push is now critical for the company's financial health. Analysts at Citigroup note that BYD is targeting overseas sales of 1.5 to 1.6 million vehicles for 2026. The goal is to cushion the impact of brutal price wars in its home market. CEO Wang Chuanfu recently acknowledged that BYD's technological edge over domestic competitors has narrowed.

The 2026 Outlook: Balancing Volume with Profitability

With the confirmed 2025 numbers, financial markets are adjusting their models for the coming year. Bloomberg forecasts point to potential BYD sales of around 5.3 million vehicles in 2026. The company's success in meeting its adjusted 2025 target reinforces its reputation for reliable execution.

The central question now revolves around profitability. BYD closed 2025 having reported declining profits for two consecutive quarters. Simultaneously, the sales mix is shifting decisively away from plug-in hybrids (down nearly 8%) and toward pure electric vehicles, bringing cost structures into sharper focus.

For BYD's equity, the coming weeks will be pivotal in determining whether robust export growth can sustain margins in the face of noticeably weakening home market demand.