BYD Corporation Proves Fallibility in Latest Setbacks

BYD's International Expansion Boosts Sales and Strengthens Presence

BYD Company, the Chinese electric vehicle maker, has seen a significant surge in its overseas sales in August 2025. The company sold 80,464 vehicles, marking a 146% year-over-year increase.

This growth can be attributed to BYD's strategic approach of building factories where it sells, a move designed to reduce tariff pain, shipping costs, and improve goodwill with local governments. In 2025, BYD expanded internationally by localizing production and vertically integrating operations in Brazil, Southeast Asia, and the EU.

One of the notable locations for BYD's European EV production is Szeged, Hungary. The company plans to introduce new models and expand retail and charging infrastructure across Europe, aiming for over 2,000 outlets by the end of 2026.

BYD's international success is also due to its ability to control its supply chain, localize production, and adapt brands to different international markets. The company uses a multibrand strategy, offering aggressive pricing via its main flagship brand, premium segments via the Denza brand, and ultra performance and luxury via the Yangwang brand.

Despite this growth, BYD's total deliveries in August 2025 were essentially flat compared to the previous year, at 373,626 vehicles. This stagnation can be partly attributed to intensifying competition from Chinese automakers.

Interestingly, BYD started as a battery producer but evolved into a full electric vehicle maker. In 2024, it overtook Tesla in global EV sales. One of its key victories was taking over the Chinese market with its highly advanced and aggressively priced EVs.

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For instance, if you invested $1,000 at the time of the Netflix recommendation in 2004, you would have $670,781 today. Similarly, investing $1,000 at the time of the Nvidia recommendation in 2005 would have grown to $1,023,752 today.

Geely Automobile Holdings Limited, another Chinese automaker, also saw a jump in global deliveries in August 2025, with a 38% increase to 250,167 vehicles. However, the industry is facing challenges, with China having overproduction capacity and a brutal price war that's eroding margins across the industry.

Despite these challenges, the potential for growth in the electric vehicle market remains promising, and companies like BYD are well-positioned to capitalize on this opportunity.