BYD Faces Headwinds Amid Aggressive Growth and Competition

Following five years of rapid growth, Chinese automaker BYD Co. is now navigating a series of significant challenges. In 2024, the company achieved a milestone, surpassing Tesla to become the world's leading seller of electric vehicles. This success was largely attributed to robust government support, aggressive pricing strategies, and successful international expansion. Despite this considerable achievement, BYD is now facing a considerable reality check. A primary concern is the decline in domestic sales, which have been decreasing since May. While international deliveries have shown growth, they have not been sufficient to offset this shortfall in BYD's home market. Concurrently, BYD is experiencing increased scrutiny from Beijing regarding the intense price war that was instrumental in its rapid ascent.