The Chinese automotive giant BYD recorded record sales figures in July, but behind these impressive numbers lie a number of challenges as the company enters the second half of the year.
Last month, BYD sold around 420,000 vehicles, which is 22% more than in July 2025. The company considers this result a new starting point and hopes that success in the second half of the year will compensate for the relatively weak results of the first six months, according to Bloomberg.
However, the numbers still do not speak in favor of the company. To reach even the minimum threshold of the plan to sell 5-5.5 million vehicles annually, BYD needs to supply dealers with about 530,000 vehicles per month. Currently, this pace is not being maintained: from January to June, the company sold only 1.81 million vehicles.
The first half of the year has been challenging for production. The company has had to temporarily halt production lines to upgrade them for the production of next-generation batteries.
Against this backdrop, the sales structure has changed significantly: the share of exports has reached 43% of total sales. The Chinese manufacturer is actively expanding its presence in the markets of South America and Europe.
At the same time, the domestic market in China shows signs of stagnation, attributed to both economic slowdown and intensified competition.
International expansion is also accompanied by an expansion of the model range. The company has introduced right-hand drive hybrid Seal 6 models built on the fifth generation DM-i platform, an updated electric Seal for the European market, and the compact electric Raccoon for the Japanese kei-car class.
However, global advancement has encountered serious obstacles in Hungary.
The construction of BYD's factory in the city of Szeged has turned into a scandal. Local authorities have launched an investigation following reports of possible violations of labor legislation by subcontractors.
At the same time, the new government in Budapest has begun reviewing the legality of previously approved state subsidies, tax incentives, and environmental permits for the project.
These investigations have directly affected the timelines for the start of production. Official representatives of BYD have confirmed that the start of vehicle assembly at the Hungarian plant has been postponed to the fourth quarter of 2026.
Thus, the launch of the project is delayed by nearly a year compared to initial plans.
