On June 9, at the Shenzhen Pingshan headquarters, BYD held its 2025 Annual General Meeting. Nearly a thousand shareholders and shareholder representatives attended in person, setting a new record for on-site attendance at the company's previous shareholder meetings. During the meeting, BYD Chairman Wang Chuanfu and other executive team members further addressed shareholder concerns regarding sales volume, production capacity, intelligent development progress, overseas layout, and stock price controversies, among other issues.
1. Regarding Sales Fluctuations
Among these, regarding the cyclical fluctuations in sales volume caused by adjustments in the new energy vehicle purchase tax policy in the first quarter of this year, Wang Chuanfu stated: "The worst is already behind us."
As a Chinese automotive enterprise that focuses exclusively on new energy vehicles and does not produce fuel-powered cars, data shows that in the first quarter of this year, BYD's total sales volume was approximately 700,000 units, a year-on-year decrease of 30.01%. Affected by the decline in sales, BYD's revenue and net profit in the first quarter also declined, with net profit attributable to shareholders decreasing by 55.38% year-on-year.
It is worth noting that although policy adjustments brought significant impact, the overall decline in the first quarter of this year was not due to insufficient internal momentum within BYD, but rather more due to external environmental influences. As the penetration rate of new energy gradually increases, and the transition to Gen-2 Blade Battery and Flash Charging technologies progresses, BYD has gradually returned to a state of positive growth.
In March this year, BYD released the second-generation Blade Battery and Flash Charging technologies. As key technologies to conclude the first half of electrification for BYD, the two technologies directly address the core refueling anxiety of electric vehicle users. Immediately after their release, they quickly received recognition from domestic and international markets, causing orders to surge. After active adjustments in March and April, in May, BYD's sales volume returned to positive growth.
2. Regarding Gen-2 Blade Battery Production Capacity Increase
Of course, the current Gen-2 Blade Battery still faces challenges of production bottlenecks. Due to the huge difference in internal structure between the Gen-2 Blade Battery production line and the first generation, the original production lines need to be modified and upgraded, and capacity ramp-up requires a certain period. Regarding the current "supply falling short of demand" for the second-generation Blade Battery, Wang Chuanfu also gave a positive response at this annual general meeting: the capacity for the Gen-2 Blade Battery is currently rising month by month, with an increase of 20,000 to 30,000 units per month.
"How many cars BYD can sell this year does not depend on orders, but depends on battery production volume." Wang Chuanfu stated that a larger release of production capacity will occur in 2027, at which time both domestic and international markets will exert effort simultaneously.
3. Regarding Overseas Market Growth
Especially worth noting is that in BYD's sales structure this year, as the second growth curve, the growth momentum of BYD's overseas market is gradually being realized. In 2025, BYD's cumulative overseas sales exceeded one million units. From January to May this year, BYD's overseas sales of passenger cars and pickup trucks have reached 614,500 units, with overseas sales continuously setting new records.
Based on this momentum, Wang Chuanfu also clearly stated that this year, BYD is expected to exceed its overseas sales target of 1.6 million units. Regarding the development of the overseas market, Wang Chuanfu also clearly emphasized that BYD's exports should not only pursue growth but must also adhere to the principle of localization, maintain long-term stability, and achieve win-win results with the local area.
Wang Chuanfu also sorted out the global production capacity map one by one at the annual general meeting: South America uses Brazil as the main production base; the European Hungary factory has entered the production phase in 2026; the Southeast Asia Thailand factory is already in production, and the Indonesia factory is about to enter mass production. Demand in the Middle East market is strong, and the Australian market is growing steadily. BYD plans to comprehensively layout Flash Charging stations overseas in the fourth quarter of 2026, and has already completed intelligent driving R&D and technical layout in each core market.
4. Regarding the Layout of the Second Half of Intelligentization
Supporting BYD's comprehensive blossoming both domestically and overseas, the core keyword remains "Technology".
After releasing the second-generation Blade Battery and Flash Charging technologies in March this year, in May, BYD also held a strategy conference on intelligentization, officially proposing three goals for the second half of intelligentization: zero traffic accidents, Super Driver, and Super Secretary. This launched the era of city navigation for everyone and released several major technologies including China's first 4nm intelligent driving chip Xuanji A3, L3/L4 technology, DiDi Xia intelligent agent, etc.
At the press conference, Wang Chuanfu announced that BYD will continue to invest over 100 billion yuan in R&D funds to solve traffic safety issues. At this annual general meeting, Wang Chuanfu judged that according to the current speed of AI technology development, L3 and L4 autonomous driving will definitely land earlier. Addressing concerns about L3 implementation, Wang Chuanfu also responded that BYD has made sufficient preparations in various dimensions such as chips, computing power, data, and ecosystems. Once regulations land, BYD will take off quickly.
5. Regarding the Challenge of Brand Premiumization
BYD's brand premiumization has always been one of the topics most concerned by the outside world. At this annual general meeting, regarding the premiumization transformation that shareholders were concerned about, Wang Chuanfu's response was also very straightforward.
He believes that cars are transportation tools involving life safety and cannot rely solely on "flashy traffic". The competition of premiumization must eventually return to the source of technology and products to build user trust. To this end, he proposed the "Three No Principles": never disparaging competitors, never complaining about the external environment, and never sacrificing technology investment for short-term interests.
Wang Chuanfu also revealed that in the coming two years, BYD will launch a batch of more stunning new technologies to win reputation in the mid-to-high-end market. Currently, BYD's premiumization has made corresponding progress in the overseas market.
6. Regarding Raw Material Cost Increases
Due to the rise in raw material costs, in recent times, several domestic automotive companies have successively raised terminal selling prices, and BYD is one of them. Regarding this round of price hikes, BYD Board Secretary Li Qian provided BYD's four response strategies:
Continuously create cost advantages relying on technological innovation;
Accelerate the premiumization of product structure to dilute material costs with higher profit per vehicle;
Promote overseas market expansion, overseas profit per vehicle is significantly better than domestic;
Rely on scale advantages to continue volume sales, spreading out fixed costs.
7. Regarding Undervaluation of Stock Price
Controversies over stock price and valuation have always plagued BYD. The 2025 financial report shows that BYD's revenue exceeded 800 billion yuan, with a net profit attributable to shareholders of 32.6 billion yuan. The gross profit margin of new energy vehicles was 28.8%, far exceeding Tesla's 17.8% for the same period, but the price-to-earnings ratio has long been below the industry average, and the HK stock market capitalization is only about 1/14 of Tesla's.
Facing questions about "high sales volume, low valuation", Wang Chuanfu stated, "Everyone agrees on BYD's potential, but the current stock price has not yet reflected it." In this regard, Wang Chuanfu also hopes shareholders will remain patience and engage in value investment.
8. Regarding the Goals for the Next Five Years
In memory, BYD rarely discussed sales targets in public occasions, but at this annual general meeting, Wang Chuanfu made a firm and clear commitment: "Five years later, in terms of scale, BYD will be able to achieve true global number one." Regarding specific sales targets, Wang Chuanfu stated that by 2030, BYD will strive to achieve an annual production and sales volume of 10 million units.
To achieve this goal, the dual-wheel drive of domestic and overseas markets, Gen-2 Blade Battery and Flash Charging technologies, more stunning technologies to be launched in the coming two years, the ramp-up of overseas factory capacity, and the gradual breakthrough in premiumization will all be sources of confidence for BYD to rush towards this long-term goal.
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