Wang Chuanfu launches a global "tough battle"
Wang Chuanfu launches a global "tough battle"
Author | Zhou Zhiyu
Editor | Zhang Xiaoling
Faced with the internal competition in the domestic market, Wang Chuanfu is initiating a massive gamble.
BYD's recently released Q3 2025 report shows that the net profit attributable to shareholders for the quarter was 7.82 billion yuan, with revenue of 194.99 billion yuan. This financial report indicates that the golden era of "barbaric growth" for new energy vehicles has come to an end. BYD also needs to find a breakthrough path to achieve new growth.
Investors who are bearish on BYD believe that the "red sea slaughter" in the domestic market is severely pressuring its profitability.
For investors who are optimistic about BYD's future, this financial report still has highlights: Q3 net profit increased by 23% compared to Q2; and the overseas market is becoming a new backbone. The increase in overseas sales as a proportion of BYD's revenue strengthens investors' confidence in BYD's globalization efforts.
From the financial report, BYD's current growth engine is no longer the domestic cost-performance strategy, but global localization. The upcoming overseas sales will be the backbone supporting BYD's valuation and market capitalization.
The changes in operating cash flow and the R&D expenses reaching 43.75 billion yuan in the first three quarters, as indicated in the Q3 financial report, show that BYD is "building momentum" for global expansion and intelligent upgrades.
Sources familiar with BYD indicate that this year, BYD's main goal has shifted from domestic sales to a global brand offensive.
This offensive is not easy to execute. Liu Xueliang, general manager of BYD's Asia-Pacific automotive sales division, admits that Chinese car companies going overseas "do not have the opportunity to start from scratch; they all start from a negative."
He recalls that in 2004, BYD was sued in Tokyo over battery patents and couldn't even hire a lawyer. In contrast, when passenger cars entered Japan in 2022, the media headline was "Black Ships Arrive." Liu Xueliang candidly states that BYD's subsidies in Japan are far less than those of Japanese car companies and Tesla, "We have become accustomed to unfair competition in many countries."
However, there has been a noticeable improvement trend, and BYD's strategy in Japan is also very patient. Liu Xueliang admits that BYD has only sold 7,123 cars in Japan over three years, "which is less than our domestic ocean network's order volume in one hour."
But BYD's approach demonstrates the patience and determination of this gamble.
"We have not set sales targets in Japan," Liu Xueliang says. Their goal is to establish a network of 100 dealers in Japan by 2025.
In addition, with BYD's locally designed K-Car RACCO (with sliding side doors) for the Japanese market, which has a 20cm lower body to fit 1550mm garages, and standard "child omission alarms," these high-commitment models expand BYD's vehicle layout in the Japanese market and can further improve BYD's brand image overseas.
Cost factors suppressing profit margins (tariffs and logistics) are also improving. To control logistics, BYD is building its own "overseas fleet." In April 2025, the "BYD SHENZHEN," a roll-on/roll-off ship with 9,200 parking spaces, has set sail, aiming for an annual capacity of over one million vehicles by 2026 In the face of the European Union's tariff barriers, BYD has chosen to build a factory in Hungary; in Brazil, the factory rolled out its first vehicle just 15 months after construction, with President Lula attending the event; in Thailand, its factory has been in operation for a year, breaking the Japanese monopoly.
However, Wang Chuanfu's "global dream" will be a long and arduous journey. He has to contend with entrenched players like Toyota, Volkswagen, and Hyundai, which have dominated the global market for half a century. BYD's brand-building efforts will be a lengthy process.
Some institutions believe that BYD's third-quarter pain is also a tactical adjustment for high-end models and export combinations in 2026. Citigroup analyst Jeff Chung believes that BYD's absolute and relative inventory both decreased month-on-month in September. With reduced inventory, BYD is expected to regain market attractiveness due to relatively stable profit margins and cost advantages.
According to Morgan Stanley's expectations, overseas sales could become a new growth driver for BYD, with overseas sales expected to reach 1.6 to 1.8 million vehicles by 2026.
With an investment of 43.75 billion in R&D and the push for high-end products, BYD's overall situation in the Q3 financial report reflects both pain and expedition. This is also in the context of the market continuously devaluing, where the narrative of overseas growth instead supports BYD's future.
Moving forward, the real point of interest lies in whether the Chinese automotive industry can break out of the "low-price competition" trap.
In the past, Chinese automotive exports often relied on "cost-performance" as a stepping stone. Now, led by BYD, Chinese car manufacturers are attempting to compete head-on with international top brands in terms of technology and branding.
This is not only Wang Chuanfu's global offensive but also a collective upgrade battle for the Chinese automotive industry as it transitions from a manufacturing powerhouse to a brand powerhouse. Whether it can truly conquer mature markets like Japan and Europe will be the only standard to test the quality of this offensive.
Risk Warning and Disclaimer
The market has risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account individual users' specific investment goals, financial conditions, or needs. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk
