Wang Chuanfu launches a global "tough battle"

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Author | Zhou Zhiyu

Editor | Zhang Xiaoling

Facing fierce domestic market competition, Wang Chuanfu is launching a massive gamble.

BYD's recently announced Q3 2025 financial report shows a net profit attributable to shareholders of 7.82 billion yuan for the quarter, with revenue of 194.99 billion yuan. This financial report indicates that the golden era of the “wild growth” of new energy vehicles has come to an end. BYD now needs to find a way to break through and seek new growth drivers.

Investors pessimistic about BYD believe that the domestic "red ocean" battle is putting significant pressure on its profitability.

For investors optimistic about BYD's future, this financial report still has highlights: Q3 net profit increased by 23% from Q2; and overseas markets are becoming the new backbone. The increase in the share of overseas sales in BYD's revenue further strengthens investors’ confidence in BYD's globalization strategy.

According to the financial report, BYD's current growth engine is no longer domestic cost-effectiveness, but global localization. Upcoming overseas sales will be the backbone supporting BYD's valuation and market cap.

Q3 data on changes in operating cash flow and R&D expenses (reaching 43.75 billion yuan in the first three quarters) indicate that BYD is building momentum for global expansion and intelligent upgrades.

A person familiar with BYD said that this year, BYD’s main goal has shifted from boosting domestic sales to a global brand offensive.

This battle will not be easy. Liu Xueliang, General Manager of BYD Asia-Pacific Auto Sales Division, admitted that Chinese car companies venturing abroad "have no chance to start from zero, but always from a negative number."

He recalled that in 2004, BYD was sued for battery patents at the Tokyo station and couldn't even hire a lawyer. When its passenger vehicles entered Japan in 2022, media headlines were “Black Ships Invade.” Liu Xueliang bluntly stated that BYD receives far fewer subsidies in Japan than Japanese car companies and Tesla, “We’ve gotten used to unfair competition in many countries.”

There are, however, signs of improvement, and BYD’s strategy in Japan is very patient. Liu Xueliang acknowledged that BYD sold only 7,123 cars in Japan over three years—"fewer than our domestic Ocean Network receives in orders in one hour."

But BYD’s approach demonstrates patience and determination in this high-stakes game.

“We have not set sales targets in Japan,” Liu Xueliang said. Their goal is: by 2025, to establish a network of 100 dealerships in Japan.

Additionally, with BYD developing K-Car RACCO (with sliding side doors) specifically for the Japanese market, lowering car height by 20cm to fit 1,550mm garages, and standardizing “child left-behind alerts”—these high-sincerity localized models expand BYD’s lineup in Japan and can further improve its brand image overseas.

Cost factors suppressing profitability (tariffs and logistics) are also improving. To control logistics, BYD is building its own “overseas fleet.” In April 2025, the 9,200-car-capacity "BYD SHENZHEN" ro-ro ship set sail, with a goal to achieve annual capacity of over 1 million vehicles by 2026.

Facing EU tariff barriers, BYD chose to build a factory in Hungary; in Brazil, the first vehicle rolled off the production line just 15 months after construction started, with President Lula attending; in Thailand, its factory has been operational for a year, breaking the Japanese brands' monopoly.

However, Wang Chuanfu’s “global dream” will be a long and arduous journey. He faces entrenched giants like Toyota, Volkswagen, and Hyundai, which have dominated the global market for half a century—BYD's brand offensive will be a prolonged process.

According to some institutions, BYD’s Q3 growing pains are also a tactical adjustment for high-end models and export mix in 2026. Citigroup analyst Jeff Chung believes BYD’s absolute and relative inventories both declined in September compared to the previous month. With lower inventory, BYD may regain market appeal through relatively stable profit margins and cost advantages.

According to Morgan Stanley’s forecast, overseas sales could become a new growth driver for BYD, with overseas sales expected to reach 1.6–1.8 million vehicles in 2026.

Along with a 43.75 billion yuan R&D investment and its move upmarket, BYD’s Q3 report reflects both growing pains and an overseas expedition. Against the backdrop of continuous valuation cuts in the domestic market, the overseas growth narrative actually sustains BYD’s future.

Next, the real focus will be whether China’s auto industry can break out of the vicious cycle of “low-price internal competition.”

In the past, Chinese auto companies entering overseas markets mainly relied on “cost-effectiveness” as a foot in the door. Now, with BYD at the forefront, Chinese car companies are trying to compete head-on with top international brands in technology and brand power.

This is not only Wang Chuanfu’s global offensive, but also a collective upgrading battle for China’s auto industry—from being a manufacturing giant to becoming a brand powerhouse. Whether they can truly conquer mature markets like Japan and Europe will be the ultimate test of this campaign’s success.

Risk Warning and DisclaimerThe market carries risks; investments need caution. This article does not constitute personal investment advice and does not take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their own circumstances. Investment decisions made based on this are at your own risk. ```