BYD Co. Ltd. BYDDY BYDDF has reportedly slashed the annual sales target for 2025 by 16% amid a decline in profits.

The Chinese EV giant slashed its delivery target for 2025 to 4.6 million units, according to sources cited by Reuters on Thursday. The company had earlier targeted an annual sale of 5.5 million units, but that figure has faced multiple downgrades recently, the report said.

BYD did not immediately respond to Benzinga's request for comment. 

While there was no specific reason given by the sources, the report said that it comes as the company reportedly feels pressure from competitors like Geely Automobile Holdings Ltd. GELYF GELYY.

The news comes as BYD earlier reported a 30% decline in profit at the company's second-quarter earnings call recently. BYD's profit dropped to RMB 6.36 billion (approximately $891 million), which had resulted in a 6% drop in its shares on the Hong Kong stock exchange.

Meanwhile, the company's European expansion continues full swing as BYD recorded a 225% surge in European sales during July, while rival Tesla Inc.'s TSLA sales dropped 40.2%.

BYD continues to remain a key player in the EV battery supply market, capturing over 17.8% of the global market share with 105 GWh worth of battery installations from January to July 2025.

Elsewhere, Xpeng Inc. XPEV launched the P7 sedan in the Chinese domestic market for $30,000, securing 10,000 orders in under seven minutes amid stiff competition in the industry as the EV price war continues on.

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