BYD Records First Monthly Sales Decline of 2025 as EV Upstarts Shatter Delivery Records

In a significant shift within China's electric vehicle (EV) landscape, industry giant BYD has reported its first year-on-year monthly sales decline for 2025. This dip occurred during the traditional auto peak season, amplifying concerns about a slowdown for the market leader, even as a new wave of EV contenders posted record-breaking deliveries.

BYD: The Reigning Champion Faces Headwinds

According to the latest figures, BYD delivered 393,060 vehicles in September, marking a nearly 6% decline compared to the same period last year. This represents the first time in 2025 that the company has seen a year-on-year monthly contraction.

This development is further underscored by reports that BYD has slashed its annual sales target by as much as 16% to 4.6 million units. The fierce price war and a gradually saturating domestic market are cited as primary reasons.

However, context is crucial: BYD continues to dominate market share, accounting for over 54% of total EV sales in September. This indicates that its position as the "national EV champion" remains formidable, though not unassailable.

The Rise of the Challengers: A Dynamic Market Shift

While the titan faces growth hurdles, a cohort of emerging EV players collectively shattered their own records, painting a picture of an intensely competitive and diversifying market.

Leapmotor: Backed by global automaker Stellantis, Leapmotor delivered 66,657 vehicles, a staggering 97% year-on-year increase. Its C10 and C16 models continue to lead their respective segments.

Harmony Intelligent Mobility Alliance (HIMA): The Huawei-backed alliance, including brands like Aito and Chery, set a fresh monthly record with 52,916 units, breaking past the 40,000-delivery barrier.

Xiaomi: The smartphone maker continued its impressive ramp-up, delivering over 40,000 units in September. Notably, its YU7 model, a direct competitor to the Tesla Model Y, has accumulated 40,000 deliveries in just three months since its July launch.

Xpeng & Nio: Xpeng's deliveries surged 95% year-on-year to 41,581 units, while Nio posted its second consecutive record month with 34,749 deliveries, nearly half of which came from its family-oriented Onvo brand.

Li Auto: The company rebounded in September with 33,951 deliveries after two consecutive months of underperformance.

Behind the Market Shift

According to Joey Ying, an auto analyst at Nomura, this sequential sales improvement is partly driven by promotions from automakers and incentive policies from the Chinese government, typical for the year-end peak season.

However, the rise of the challengers points to a deeper trend: consumers are increasingly seeking diverse choices, prioritizing cutting-edge technology (often powered by tech giants like Huawei), fresh designs, and equally competitive pricing.

Outlook for China's EV Market

BYD's sales dip is not necessarily an overall negative signal but rather an indication that China's EV market is entering a mature phase. Consumers have more choices, and competition is escalating beyond just price to encompass technology, service, and ecosystem development.

In the short term, the battle for market share will intensify. Automakers must continuously innovate to attract customers. While BYD's lead appears secure for now, the gap is undoubtedly narrowing as new players consistently break delivery records.

Frequently Asked Questions (FAQ)

1. Why did BYD's sales decline for the first time in 2025?
The primary reasons include BYD's reported decision to cut its sales target due to an intense price war and signs of a slowing domestic market. Additionally, fierce competition from a new wave of EV manufacturers is having a significant impact.

2. Which emerging EV automakers are posting standout performance?
Companies like Leapmotor (up 97%), Xiaomi (over 40,000 deliveries), Xpeng (up 95%), and Nio have repeatedly set new monthly delivery records, driven by new models, competitive pricing, and backing from major tech corporations.

3. What is the outlook for the Chinese EV market following this shift?
The market is transitioning from a single-leader dominance to a multi-polar landscape. Competition will intensify, focusing not only on price but also on technology, design, and user experience. This ultimately provides consumers with more choices.