Chinese electric vehicle maker BYD recorded a second consecutive month of global sales growth in June.
Strong overseas demand helped offset continued weakness in China, where the company’s domestic sales remained under pressure.
BYD sold 403,472 vehicles during the month. That represented a 5.5% increase from June 2025, based on calculations using the company’s stock exchange filing.
The result followed a modest 0.3% annual increase in May. That gain ended an eight-month period of declining sales.
BYD Exports Nearly Double
Overseas sales remained the main source of growth for BYD.
The company sold 175,349 vehicles outside China in June. That was 94.7% higher than in the same month last year.
Rapid export growth helped cushion a 22% decline in BYD’s Chinese sales.
The company’s domestic sales have now been falling on an annual basis since May 2025.
Leapmotor Posts Faster Sales Growth
BYD continued to sell significantly more vehicles than Leapmotor. However, its smaller rival recorded much faster growth.
Leapmotor sold 93,376 electrified vehicles in June. That represented a 95% increase from a year earlier.
The comparison highlights the intense competition developing across China’s electric vehicle market.
Weak Demand Pressures China’s EV Market
BYD’s domestic performance has been affected by several challenges.
Cuts to government subsidies have reduced support for electric vehicle purchases. At the same time, China’s prolonged property market downturn has weakened household wealth and consumer confidence.
High vehicle inventories at dealerships have added further pressure.
These conditions have forced automakers to rely more heavily on discounts, price cuts and overseas expansion.
China Car Sales Forecast Cut Sharply
The outlook for China’s wider automotive market has also deteriorated.
The China Passenger Car Association expects vehicle sales in the country to fall 11% this year.
That represents a sharp downgrade from its previous forecast for a decline of only 1%.
China remains the world’s largest automotive market. Therefore, a prolonged slowdown could create further challenges for domestic electric vehicle manufacturers.
BYD Considers a Second European Factory
BYD is moving closer to deciding where to build its second European manufacturing plant.
The company already has a factory project in Hungary. A senior adviser to BYD’s European operations said the automaker is now approaching a decision on another production site.
Expanding local manufacturing could help BYD reduce shipping costs, improve delivery times and strengthen its position in Europe.
It could also help the company manage potential tariffs and other trade barriers affecting Chinese electric vehicles.
BYD Targets Global Auto Leadership
At BYD’s annual shareholder meeting in Shenzhen, Chairman Wang Chuanfu outlined an ambitious long-term goal.
He said the company aims to become the world’s largest automaker within five years.
The target was intended to reassure investors following a sharp decline in BYD’s share price.
Wang highlighted overseas sales growth, improved batteries and faster charging technology as major drivers of the company’s expansion plans.
EV Stocks Face Price-War Pressure
BYD is not the only Chinese electric vehicle company facing pressure in the stock market.
Shares of Leapmotor, Li Auto and Xiaomi have also weakened as competition intensifies.
Automakers continue to reduce prices and launch new models in an effort to protect market share.
However, aggressive price competition can reduce profit margins. A weaker demand outlook also increases the risk that manufacturers will be left with excess inventory.
Export Growth Becomes More Important for BYD
BYD’s June sales figures show that international expansion is becoming increasingly important to the company’s growth strategy.
Weak demand in China remains a significant challenge. However, strong overseas sales are helping BYD maintain overall growth.
The company’s ability to expand production in Europe, strengthen its global brand and maintain competitive pricing could determine whether that momentum continues.
