BYD posts weakest sales growth in five years on headwinds at home

BEIJING, Jan 1 (Reuters) - Sales growth at BYD 1211.HK 002594.SZ slowed to 7.73% in 2025, its weakest pace in five years, as the Chinese electric vehicle maker grappled with growing local competition and a weakening of its technological lead.

BYD's total sales were down 18.3% in December from a year earlier, extending declines for a fourth month and marking the largest monthly drop in nearly two years, according to the data in a stock filing on Thursday.

For the full year, sales rose by 7.73% to 4.6 million units, meeting its slashed target. BYD had lowered its 2025 sales target by 16% as domestic sales weakened from July onward, challenged by competitors including Geely GEELY.UL and Leapmotor 9863.HK in the budget segment.

BYD's domestic sales fell in 2025 due to its weakening technological leadership, Chinese media outlet Southern Metropolis Daily reported, citing Chairman Wang Chuanfu's comments at an investor conference in December.

Wang added that the company would release major innovations in 2026, without elaboration.