In a notable shift of tone, BYD Chairman Wang Chuanfu publicly acknowledged areas where the electric vehicle giant is facing headwinds, while simultaneously outlining a strategic counter-offensive. The company continues to lead its Chinese rivals in profitability, yet it is contending with softening domestic sales and a substantial vehicle recall.
Financial Resilience Amid Operational Setbacks
Despite the challenges, BYD’s financial dominance remains clear. For the first three quarters of 2025, the automaker reported a net profit of 23.3 billion yuan. This figure represents approximately 64% of the combined earnings of 14 major Chinese automotive manufacturers. The contrast with competitors is stark: six large EV rivals, including NIO, XPeng, and Li Auto, collectively posted a net loss of 10.7 billion yuan over the same period.
Operationally, the company is managing a significant recall. Initiated on December 4, the action covers 88,981 units of the Qin PLUS DM-i model. These vehicles, manufactured between January 2021 and September 2023, are being recalled due to potential battery system defects. This brings the total number of BYD vehicles recalled in 2025 to over 210,000. Market reaction has been muted, suggesting investors had already priced in these operational risks.
Chairman Acknowledges Technology Gap, Promises Breakthrough
Facing shareholders at an extraordinary general meeting on December 5, 2025, Wang Chuanfu offered an unusually self-critical assessment. He attributed the recent decline in domestic sales to a narrowing technological advantage and increasing product homogeneity in the fiercely competitive EV sector.
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In response, Wang promised a “significant technological breakthrough,” though he withheld specific details. He indicated that BYD is preparing a substantial innovation to counter the “wow factors” presented by competitors. Key development areas include addressing weaknesses such as charging performance in low temperatures.
Strategic Pivot: Explosive Export Growth Offsets Domestic Slowdown
A strategic realignment is becoming evident in the company’s sales data. For November, domestic wholesale sales fell by 5.8% year-over-year. In stark contrast, exports skyrocketed to 132,000 units—a staggering increase of 325.9%. This signals a clear shift in growth narrative from domestic market dominance to aggressive global expansion.
This international push is being executed with concrete measures:
* Japan: The company launched the Sealion 6, its first plug-in hybrid for the Japanese market. With a starting price of 3.982 million yen (approximately $25,690), the model directly challenges established local hybrid manufacturers.
* Australia: Through mid-December, BYD is offering a cashback of 4,000 AUD on the Sealion 7 Premium, effectively reducing its price to around 50,990 AUD. This move is widely seen as an effort to maximize delivery volumes for the fourth quarter.
All eyes are now on the official quarterly results, due on December 10. These figures will provide critical insight into whether Wang’s promised technological advancement translates into tangible results beyond a strategic pledge.
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