Shares of Chinese electric vehicle manufacturer BYD experienced significant selling pressure on the Hong Kong stock exchange, declining sharply amid a broader market downturn. The sell-off occurred despite BYD maintaining a substantial lead over competitor Tesla in global pure electric vehicle sales for 2025.
Profit-Taking Drives Decline
During trading sessions, BYD equity dropped 5 percent to HK$108.20, reflecting wider market weakness as both the Hang Seng Index and Hang Seng Tech Index registered losses. Market participants appeared to be securing profits across recently high-performing sectors, particularly electric vehicles. The downward movement affected BYD alongside other EV manufacturers including Li Auto, which also saw its shares retreat.
Quarterly Results Disappoint Investors
Recently published sales figures have compounded market concerns about the company’s growth trajectory. BYD reported a 5.5 percent year-over-year revenue decrease for September, ending a 19-month streak of continuous expansion. This development represents the company’s first quarterly sales contraction since 2020, attributed to intense price competition and mounting rivalry within China’s domestic automotive market. The slowdown proved particularly noticeable in plug-in hybrid vehicle deliveries.
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International Growth Offsets Domestic Challenges
Confronted with increasing headwinds in its home market, BYD has accelerated its global expansion strategy with encouraging results:
- Electric vehicle and plug-in hybrid exports doubled during 2025
- European and United Kingdom sales from January through August increased nearly fourfold compared to the same period last year
- Despite September’s revenue decline, total deliveries for the first nine months of 2025 still showed an 18.64 percent increase
As China’s automotive sector demonstrates signs of saturation and margin compression, international operations are becoming increasingly vital to BYD’s performance. The company has revised its annual sales target in response to domestic market conditions. Upcoming quarterly results scheduled for October 28 will reveal whether global growth can sufficiently counterbalance the home market downturn.
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