BYD Confirms Lowered Annual Targets Amid Shifting Market Dynamics

A record-breaking monthly delivery figure for November has been overshadowed by a significant strategic retreat from BYD. The Chinese electric vehicle titan is scaling back its ambitions for the full year, pressured by relentless price competition and a contracting domestic market. This recalibration of its 2025 forecast comes as CEO Wang Chuanfu pledges a renewed technological push to regain competitive edge.

The company’s latest operational update presents a study in contrasts. November saw BYD deliver 480,186 vehicles, marking its highest monthly total for 2025. However, this headline figure masks an underlying trend: it represents a year-on-year decline of 5.25%. This November result extends a streak to three consecutive months of shrinking sales within the company’s home market.

In direct response to these conditions, management has executed a sharp downward revision of its global delivery target for 2025. The original ambition of 5.5 million vehicles has been abandoned, with the company now anticipating approximately 4.6 million units for the full year. Despite this adjustment, BYD maintains its position as China’s leading automaker, having delivered 4.18 million vehicles through the end of November, an increase of 11.3% compared to the same period last year.

CEO Outlines Plan for Technological Differentiation

Addressing shareholders at an extraordinary general meeting, CEO Wang Chuanfu provided a candid assessment. He acknowledged that BYD’s technological lead is narrowing as rivals catch up and product offerings across the market become increasingly similar. Wang also suggested that favorable market conditions in prior years had led to some complacency in the company’s marketing efforts.

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The corporate strategy to counter this trend will leverage its engineering workforce of roughly 120,000. Wang announced the imminent launch of what he termed “heavyweight” new technologies, though specific details were not disclosed. Over the next two to three years, BYD plans to substantially ramp up investment in electrification and intelligent vehicle systems, aiming to reestablish a clearer distinction between its products and those of competitors.

Profit Leadership Endures Despite Earnings Squeeze

Even as it navigates delivery headwinds, BYD continues to set the profitability standard for the industry. During the first three quarters of 2025, the company generated about 60% of the total net profit pooled from China’s 14 largest automakers.

BYD’s own net profit did contract by 7.55% to 23.3 billion yuan. A primary driver of this decrease was a significant surge in research and development expenditure, which jumped by over 31% to 43.75 billion yuan. This substantial investment is viewed as a clear indicator of BYD’s attempt to innovate its way out of current challenges.

Strategic attention is now shifting toward international expansion to reduce reliance on the Chinese market. The export target for 2026 is set between 1.5 and 1.6 million vehicles, supported by a planned doubling of its European distribution network. Investors are now awaiting the concrete unveiling of the promised technologies, which are seen as crucial for stabilizing margins within an intensively competitive landscape.