Wang Chuanfu, president and CEO of BYD, has publicly acknowledged for the first time the reason behind the company’s sales decline in the Chinese market. During an extraordinary shareholders meeting held on December 5 in Shenzhen, the CEO bluntly admitted that the manufacturer has lost the technological advantage that differentiated it from the competition. According to local media, Wang said that they had lost that ‘wow factor’ in the domestic market, in reference to the impact that their innovations previously generated.
The underlying problem. The local media China Securities Journal collected the statements of the head of BYD, who stated that the drop responds to two main factors. On the one hand, he admits that BYD’s technological advantage is no longer as pronounced as in previous years, which has reduced the surprise effect of its products in the market. On the other hand, the CEO acknowledged that unresolved practical problems persist, such as the slow charging speed of its vehicles in low temperature environments, a critical aspect for users in certain regions of China.
The numbers confirm the trend. In November 2025, BYD sold 480,186 new energy vehiclesthe highest monthly figure of the year, but which represented a decrease of 5.25% compared to the same month in 2024. It is the third consecutive month of year-on-year decline. Domestic sales were particularly weak, at 348,300 units, a drop of 26.81% year-on-year.
In contrast, exports exceeded 100,000 units per month for the first time, reaching 131,700an increase of 297% that has become the company’s main growth engine. We have already seen how they have broken into Europe. For BYD and the rest of the Chinese manufacturers, it is important to continue consolidating their foreign business for two main reasons: to continue feeding their factories and to increase their profit margins in the face of a China that seems to live in a constant price war.
The competition tightens. Chinese manufacturers such as Geely, Changan and Chery They have intensified their offensive with efficient hybrid and more affordable electric models, eroding their market share. Furthermore, the homogenization of products in the industry has made it difficult for BYD to stand out like before. In September 2025, SAIC Motor even temporarily surpassed BYD in monthly sales, according to they counted from CarNewsChina.
BYD’s response. Wang Chuanfu hinted that the company is preparing “heavy technologies” that will be announced soon, although it did not offer details. The CEO stressed that BYD’s strength lies in its team of approximately 120,000 engineers, who will be key to regaining technological leadership. The company plans to intensify its investment in electrification and smart technologies over the next two to three years.
Self-criticism included. Wang also made an exercise in self-criticism by admitting that favorable market conditions in previous years generated a certain complacency in the areas of marketing and merchandising, as they point out from CnEVPost.
And now what. BYD revised its global sales target for 2025 downward, from 5.5 million vehicles to approximately 4.6 million. Between January and November, the company accumulated 4,182 million units soldwhich represents 90.9% of the adjusted objective and a growth of 11.3% year-on-year. Figures that contrast with the spectacular expansion rates of previous years: 218% in 2021, 209% in 2022, 62% in 2023 and 41% in 2024.
Stella Li, its vice president, already warned us during the Xataka Awards gala We will soon have very interesting news from the manufacturer. So we can only wait to see what the firm’s strategy will be to alleviate the effect of competition.
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