BYD’s PR Tightrope Across Three Continents
BYD must juggle investor crisis comms at home with global growth stories abroad, all while managing scrutiny over pricing and quality.
BYD, the world's largest electric vehicle maker, reported a 33% decline in third-quarter profit to 7.82 billion yuan (~US$1.1 billion), with revenue dropping 3% to 194.98 billion yuan (~US$27.4 billion).
The results, announced October 30, underscore mounting pressure from China's intensifying EV price war as competitors Geely and Changan posted sales gains of 96% and 84% respectively.
The Shenzhen-based automaker delivered 1.15 million new energy vehicles in the quarter, a 1.8% decrease from the previous year. The company also lost its position as China's top-selling automaker to SAIC Motor in September 2025, with market share falling from 18% to 14%.
Domestic Weakness Offset by International Growth
BYD's domestic struggles reflect broader turmoil in China's EV market, where aggressive discounting has triggered regulatory warnings. The company reduced prices by as much as 34% across 22 models, contributing to the revenue decline despite overall production volumes.
Beijing authorities have called for an end to unsustainable price wars, expressing concerns that deep discounting may compromise product quality.
The company cut its 2025 sales target by 16% to 4.6 million units. Analysts attribute the domestic slowdown partly to inventory reduction ahead of 2026 model launches, including expanded lineups for luxury brands Yangwang and Fangchengbao.
However, overseas sales surged 160% year-over-year in the third quarter, driven by strong demand in Europe and Latin America. BYD achieved 24,963 vehicle registrations in Europe in September 2025, capturing 1.1% of the continent's battery electric vehicle market.
In emerging markets like Southeast Asia, the company has established dominant positions, securing 85% EV market share in both Thailand and Brazil.
Leighton Cosseboom
Rising R&D Investment Signals Strategic Pivot
BYD increased research and development spending by 31% to 43.75 billion yuan (~US$6.1 billion) from January through September 2025. The investment focuses on autonomous driving tech and developing premium models to improve profit margins, which have been squeezed by the domestic price war.
The company is pursuing aggressive global expansion through localized production facilities in Hungary, Thailand, and Mexico. This geographic diversification strategy aims to reduce dependence on the volatile Chinese market while capturing growing international demand for electric vehicles.
Financial Pressure Mounts Amid Expansion
The expansion drive has pushed BYD's debt-to-asset ratio to 71.1% as the company finances international factory construction. This elevated leverage raises questions about financial flexibility as the automaker navigates both domestic margin pressure and costly overseas buildout.
Despite current headwinds, industry observers expect a sales surge in the fourth quarter before certain Chinese government subsidies and tax incentives phase out. The anticipated year-end rush may provide temporary relief, though longer-term challenges from market saturation and intensifying competition remain.
For corporate communications and marketing leaders, BYD's situation highlights the complexity of managing messaging across multiple markets with divergent dynamics.
The company must balance crisis comms around domestic market share losses with positive narratives about international growth, all while addressing regulatory scrutiny on pricing practices and product quality.
As the EV landscape continues to consolidate, clear positioning on innovation investment and market strategy will prove critical for maintaining brand credibility across China, Europe, and Latin America.
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