The year 2025 began on a tough note for BYD, China’s leading electric vehicle manufacturer. As the expected sales targets were not met, the company was forced to cut back production operations and revise some of its strategic plans.
According to Reuters, BYD has canceled night shifts at several of its major factories and temporarily halted the launch of new production lines. These measures aim to reduce costs and align with actual market demand.
The company had planned to sell 5.5 million electric vehicles, a 30% increase compared to 2024. However, by the end of the first five months, only 1.76 million units had been sold. Even a sharp price drop — with some BYD electric cars now starting at 55,000 yuan (approximately $7800) — failed to resolve the issue.
According to the China Auto Dealers Association, BYD's inventory of finished vehicles is three times higher than the industry average. This indicates a significant imbalance between supply and demand.
Despite obstacles in the domestic market, BYD continues to maintain its position internationally. In April 2025, the company overtook Tesla and entered the top 10 best-selling electric vehicles in Europe. This is considered a major success for BYD.
Experts believe the main problem for the company is the saturation of the domestic market and the intensifying competition. If BYD cannot soon revive demand through an effective marketing strategy and new models, it may face even more severe crises.
Currently, BYD’s management is working on reassessing market dynamics, optimizing productivity, and strengthening focus on foreign markets. Read 'Zamin' on Telegram!
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