China’s leading electric vehicle manufacturer, BYD, is navigating a complex period marked by falling domestic sales and a significant vehicle recall. These concurrent issues are applying pressure to the company’s stock, which currently trades approximately 38% below its peak for the year.
A Shifting Sales Landscape
The company’s November 2025 deliveries, while reaching a yearly high of 480,186 units for battery-electric and plug-in hybrid vehicles, revealed a concerning trend. This figure represents a 5.25% decrease compared to the same month in the previous year, extending a sales slowdown that began in September.
A breakdown of the key November figures highlights a notable divergence within BYD’s product lineup:
* Total Deliveries: 480,186 vehicles (down 5.25% year-over-year)
* Battery-Electric Vehicles (BEVs): 237,540 units (a 19.9% increase)
* Plug-in Hybrid Electric Vehicles (PHEVs): 237,381 units (a sharp 22.4% decline)
* Exports: 131,935 vehicles (a monthly record)
* Year-to-Date Sales: 4.182 million vehicles (an 11.3% rise)
The stark contrast between robust BEV growth and a steep drop in PHEV demand suggests a rapid shift in customer preferences among BYD’s own offerings.
Quality Concerns Emerge with Major Recall
Adding to the company’s challenges, Chinese regulators mandated a recall in late November encompassing 88,981 Qin Plus DM-i plug-in hybrid models. The recall affects vehicles manufactured between January 2021 and September 2023.
The issue stems from inconsistencies in battery production that can limit performance. In severe cases, vehicles may lose the ability to operate in pure electric mode. BYD plans to address the defect through software updates and complimentary battery replacements where necessary.
This latest action brings BYD’s total recalled vehicles for 2025 to over 210,000, following a separate recall of 115,000 Tang and Yuan Pro models in October.
Management Points to Technology and Competition
Addressing the sales trend, Chairman Wang Chuanfu cited typical product cycles, a narrowing technological edge, and increasing homogeneity across the industry during an extraordinary general meeting on December 5. In response, Wang announced plans to unveil new technologies soon.
With a research and development workforce of roughly 120,000 engineers, BYD intends to significantly ramp up its investments in electrification and intelligent vehicle technology over the next two to three years.
Strong Export Performance Provides a Counterbalance
One clear area of strength is BYD’s international business. November exports surged to 131,935 vehicles, a staggering 326% increase from the prior year and a 57% jump from October. Cumulative exports for the year have reached 912,911 units.
According to Citibank, company leadership is targeting overseas sales of 1.5 to 1.6 million vehicles in 2026, following an expected 900,000 to one million units in the current year.
Intensifying Market Pressures
BYD’s challenges are unfolding against a backdrop of a softening Chinese auto market. Passenger vehicle sales across China fell 8.5% in November, marking the steepest decline in ten months. Domestic rivals such as Geely and Leapmotor are gaining ground in the budget segment.
Western automakers are also mobilizing in response to competitive threats. A recently announced partnership between Ford and Renault, revealed on December 9, exemplifies the strategic moves by established players. Ford CEO Jim Farley described the situation in Europe as a “fight for survival” against more affordable Chinese competitors.
A Tempered Outlook
To date, BYD has achieved 91% of its downwardly revised annual target of 4.6 million vehicles, having initially aimed for 5.5 million. Market analysts now project growth of approximately 5% for the full year 2025. Looking ahead to 2026, expectations are for largely stagnant sales volumes amid a significantly more competitive landscape.
