Introduction: 463,600 units—this is BYD's response for September. Yet, what truly warrants closer examination is the underlying support system: technological prowess, strategic determination, organizational agility, and an institution that has turned every vulnerability into a strength.

Wang Chuan / Author Lishicommercial Review / Producer

1

On October 7, 2026, BYD released its production and sales bulletin for September.

Data indicates that new energy vehicle sales reached 463,600 units for the month, marking a 16.98% year-on-year increase and a 5.28% month-on-month rise, setting a new historical record for September sales. This made BYD the sole automaker in China to surpass 400,000 monthly sales that month, firmly securing its position at the top of the sales rankings. In terms of product mix, passenger vehicle sales reached 456,700 units, including 273,100 pure electric models and 183,600 plug-in hybrid models. Overseas exports totaled 180,700 units, a significant 153.9% year-on-year increase, accounting for 38.8% of the group's total sales. Throughout the month, seven models each achieved monthly sales exceeding 30,000 units, with products spanning the complete price spectrum from entry-level to high-end.

Just a year prior, the trend reflected in this data was starkly different.

On October 8, 2025, BYD disclosed its production and sales bulletin for September 2025: monthly sales stood at 396,300 units, a 5.52% year-on-year decline. This marked the first year-on-year monthly decline since March 2024, ending 18 consecutive months of growth. During the same period, SAIC Group overtook BYD with 439,800 units, seizing the monthly sales crown. At that time, the prevailing narrative in the market was that BYD's competitive edge was fading, and that "the era of BYD has ended."

A year later, the figure of 463,600 units, nearly 17% year-on-year growth, and a new September record rendered these judgments obsolete. The true significance of this data lies in the fact that over the past year, BYD did not merely accelerate during a favorable cycle but achieved a turnaround during an adverse one.

To appreciate the value of this turnaround, we must first examine how far BYD fell in 2025. In fact, cumulative sales remained negative through the first three quarters of 2026. From January to September 2026, BYD's cumulative sales reached 3,131,600 units, a 3.94% year-on-year decline (compared to 3,213,600 units in the same period the previous year). In other words, while September set a new historical high, cumulative sales for the first three quarters remained lower than the previous year. BYD did not continue climbing an upward trajectory but rather forcibly redirected its growth curve back upward after a period of sustained sluggishness.

This is the most noteworthy aspect, as it touches upon a fundamental question about the rhythm of corporate growth: no company grows linearly but rather in waves.

In 2025, BYD faced triple pressures.

First, its early advantages were continuously eroded.

Around 2020, leveraging its forward-looking judgment on the new energy trend and differentiated technologies such as the Blade Battery and DM-i Super Hybrid, BYD achieved explosive growth and reached its peak around 2024. However, as the entire industry shifted toward new energy and competitors intensively invested in both plug-in hybrid and pure electric technologies, BYD's original technological lead was quickly narrowed. Leading by a step constitutes an advantage; leading by half a step becomes commonplace. When an advantage becomes commonplace, it dissipates.

Second, product weaknesses were amplified.

During a period when competitors focused their efforts, BYD's shortcomings in areas such as exterior design and intelligent driving were repeatedly scrutinized by the market and public opinion. For a company of such scale, any weakness is placed under a microscope.

Third, competitive intensity significantly increased.

New forces relentlessly pursued growth, traditional automakers fully transformed, and price competition surged. When all participants entered the same track simultaneously, the relative advantages of leading companies were inevitably diluted—this is an objective law of industry evolution.

The cumulative effect of these three pressures meant that what BYD lost in 2025 was not just sales but market confidence in its "ability to return to growth." Capital markets and public opinion are unforgiving toward leading companies: when you achieve 18 consecutive months of high growth, everything is taken for granted; but when you experience your first monthly decline, all previously concealed issues are suddenly exposed, serving as footnotes to your "decline." This nearly reflexive pessimism itself warrants scrutiny.

Herein lies an often-overlooked criterion: corporate growth follows cyclical patterns, with peaks and adjustments alternating as the norm. No company can sustain a steep growth trajectory indefinitely because such a slope relies on the superposition of technological dividends, market dividends, and organizational capabilities—all of which are cyclical. A company's growth trajectory more closely resembles a spiral: surging, retreating, consolidating, and surging again in repeated cycles. A period of retreat does not equate to decline; sometimes, it is precisely the energy-accumulation stage for the next round of growth. BYD's sluggishness in 2025 largely corresponded to such an adjustment phase. It was not a company in decline but rather a massive, previously fast-growing entity regrouping after a brief pause.

Furthermore, the existence of cycles is not detrimental to companies but rather serves as a filtering mechanism. It eliminates those with only short-term explosive power but lacking deep foundations, leaving only companies with true cycle-transcending capabilities in the game. The question worth asking is never "why did it fall?" but "can it rise again after falling?" This brings us to the next layer: how did BYD manage to rise in September 2026, a time when peers generally stagnated?

2

Shifting focus to the broader landscape of the Chinese auto market in September 2026, the theme was "extremes coexisting."

On one end, new forces collectively slowed down.

In September, the new forces camp generally showed "acceptable deliveries but nearly stagnant domestic growth." Leapmotor, leveraging extreme cost-effectiveness, exceeded 100,000 monthly sales for three consecutive months; Xiaomi and Xpeng delivered over 40,000 units, serving as rare bright spots; NIO, Zeekr, Li Auto, and Seres delivered over 30,000 units, with Li Auto falling below 32,000 units, ranking last among leading players. Multiple new forces saw sales declines that month, with "six major new forces declining" becoming another footnote to September's auto market. Domestic growth space for the entire industry was clearly constrained.

On the other end, BYD defied the trend and surged upward.

This created a stark contrast: while most new forces struggled to maintain monthly sales of 30,000 or 40,000 units, BYD achieved a 17% year-on-year increase at the 400,000-unit scale.

The larger the scale, the harder it is to sustain growth. This is both a mathematical and managerial challenge. For a company selling millions of units annually to maintain nearly 17% year-on-year growth cannot rely on chance but on systemic capabilities. While peers faced "difficulty even taking small steps," BYD's state of "being the heaviest yet running the fastest"—this contrast is precisely what makes it "formidable."

So, what did it do over the past year to achieve such a turnaround? The answer can be summarized along three main lines: reestablishing technological superiority, covering all price ranges with a product matrix, and building a second growth curve through overseas expansion. These three lines are not isolated; they collectively point to the same capability: the ability to identify weaknesses, confront them, and rapidly address them.

First, consider technology. On March 5, 2026, BYD held the "Flash Charge China, Change the World" event in Shenzhen, officially launching the second-generation Blade Battery and matching flash charging technology. The significance of this breakthrough can be measured on three levels:

First, charging efficiency. Under normal temperatures, charging is complete in 5 minutes and fully saturated in 9 minutes; in low-temperature environments (minus 30 degrees Celsius), the time extends by only 3 minutes. Wang Chuanfu announced at the event that this technology set a new global record for mass-produced charging speed.

Second, technological trade-offs. The industry had long viewed "flash charging" and "high energy density" as contradictory. BYD achieved flash charging while increasing energy density by over 5% compared to the first generation.

Third, systemic synergy. The second-generation Blade Battery, developed over six years of iteration, uses a lithium iron manganese phosphate system targeting slow charging and low-temperature charging challenges. It also introduced 1,500 kW-class flash charging stations and flash charging infrastructure plans, addressing energy replenishment through a collaborative path of "batteries + charging networks + vehicle products."

Six years in the making. While the industry focused on configuration competitions, BYD continued to tackle foundational battery and energy replenishment technologies—this is the value of expertise. For truly technology-driven companies, technology is not marketing rhetoric but the trump card for reversal when facing doubts.

Technology forms the foundation, while products are the means to translate technology into sales. In 2026, BYD launched a wave of highly competitive models across brands and price segments: the Dynasty series' Tang model bolstered its high-end flagship positioning, the Ocean series' Seal 08 and Sea Lion 08 elevated the overall competitiveness of mainstream price bands, and the Denza N8, N9, and N8L models solidified their positions in the high-end market—Denza brand sales reached 16,000 units in September, a 33.4% year-on-year increase. The most transformative was the Fangchengbao (Equation Leopard) brand, whose S series and Titan 7 models outperformed expectations. Titan 7 alone exceeded 30,000 monthly sales, while the Fangchengbao brand frequently surpassed 40,000 monthly sales, growing 155.6% year-on-year in August and ranking first among new forces brands priced above 200,000 yuan. This matrix covers the complete price range from over 100,000 to 400,000–500,000 yuan, forming structural resilience against risks. The fact that seven models exceeded 30,000 monthly sales in September reflects the matrix's full activation. This explains a key question: why could BYD stabilize its fundamentals amid overall pressure? Because its growth no longer relied on a single blockbuster model but on a portfolio where "if one area slumps, another rises."

If domestic operations were about "stabilizing and climbing," overseas expansion represented "full-scale opening." In September, BYD exported 180,700 units, a 153.9% year-on-year increase, accounting for nearly 38.8% of total sales—meaning nearly 39 out of every 100 vehicles sold went overseas. This data's significance cannot be overstated: while domestic growth space is limited and automakers fiercely compete in existing markets, BYD has equipped its growth with a new engine through a rapidly rising overseas curve. This is the fundamental reason it could set a new historical high despite domestic market pressures.

3

At this point, we can clarify what makes BYD "formidable."

Its formidability lies not in the 463,600-unit figure itself but in the speed and manner of its turnaround.

In 2025, when outside observers widely claimed BYD was "outdated in design, lacking in intelligent driving, and hitting growth limits," BYD's response was not to defend itself or engage in PR but to spend a year iterating battery technology to the second generation, setting a new industry record for flash charging, expanding its product matrix from entry-level to high-end, and boosting overseas sales by 154% year-on-year. Behind these actions lies a company's attitude toward its weaknesses: not evading, not defending, not waiting.

This exemplifies a company with deep foundations. A company's true capabilities are revealed not in favorable times but during adversity. During favorable periods, growth is common; when the wind blows, even mediocre players can take off. What distinguishes exceptional companies from ordinary ones is what they do during downturns: panicking and losing direction, or staying calm, addressing weaknesses, biding their time, and even creating opportunities.

BYD falls into the latter category, with its capabilities summed up as a triple overlay. It should be noted that these three capabilities are not isolated elements but an interlocking chain: technological expertise ensures "having cards to play," strategic resolve ensures "not playing the wrong cards," and organizational adaptability ensures "playing cards quickly."

First, consider its profound strategic resolve.

Facing overwhelming doubts, BYD did not alter its established direction—persisting in technological innovation, vertical integration, and long-termism. This resolve stems from its judgment of the industry's essence: new energy is a marathon, not a sprint. When the entire industry chases short-term sales rankings and hypes up event visibility, companies that remain undeterred by external rhythms and continue investing in R&D according to their own pace are exceedingly rare.

Second, consider its strong organizational adaptability.

Companies fear not having weaknesses but being unable to identify them or correct them once identified. BYD's ability to address design and intelligent driving shortcomings within a year demonstrates its acute self-diagnosis and efficient self-repair capabilities. This quality is the rarest and most valuable in any organization. It confirms a simple truth: the hallmark of excellent companies is not never making mistakes but correcting them quickly enough.

Third, consider the anti-fragility derived from technological expertise.

The development of the second-generation Blade Battery, which spanned over six years, was no overnight achievement. It was precisely because BYD persisted in undertaking the slowest, most challenging, and most fundamental work during the industry's most frenetic phase that it held strong cards when a turnaround was needed. Companies that rely solely on marketing hype and incremental upgrades find themselves with no recourse once the market hype subsides.

It's worth highlighting that these three capabilities are interconnected and mutually reinforcing: technological prowess provides the leverage for a comeback, strategic determination ensures perseverance during downturns, and organizational adaptability ensures these advantages are swiftly translated into market success. Together, they fully elucidate BYD's remarkable turnaround during an unfavorable cycle.

And the story is far from over. A series of even more impactful models are on the horizon: the Denza N8 will continue its assault on the high-end market, the BYD Han will further cement the flagship status of the Dynasty series, and the Fangchengbao Titan 6 will expand the already successful Titan series. This suggests that BYD's current growth is not yet its peak. With the sustained ramp-up of second-generation Blade Battery production, the expansion of the flash charging network, and a dense schedule of new model launches, its sales curve still has significant upward potential. For a company already achieving 460,000 monthly sales to still have multiple untapped advantages—this is another aspect of what makes it truly formidable.

4

BYD's journey this year serves as a highly illustrative case study for Chinese manufacturing, offering at least four key insights, with the most crucial relating to "cycles," as previously discussed.

First, growth is not an obligation but a result of capability.

No company can sustain high growth indefinitely. When growth slows, the key is not to panic but to assess its nature: is it a decline in capability or a cyclical adjustment? BYD has demonstrated that it is often the latter. This also serves as a reminder to all observers: when evaluating a company, patience is essential to see through short-term fluctuations, rather than being swayed by single-month or single-quarter figures. Current market evaluations often swing violently between "deifying" and "denouncing" companies, ignoring a fundamental truth—business is a marathon measured in years, and any single data point is merely a snapshot in that marathon.

Second, adversity is the best scenario to test a company's true strength.

What a company says during peak times matters little; what matters is what it does during downturns. When widely questioned in 2025, BYD chose to focus on actions rather than words. This ability to "do the right thing when no one is watching" is the true source of long-term competitiveness. Conversely, companies that surge during favorable times but falter during adversity often rely on temporary advantages rather than their own capabilities.

Third, the compounding power of technology will be realized over the longest time horizon.

It takes six years to forge a sword, a process that goes unnoticed during the sharpening phase but becomes dazzling once complete. All genuine competitive moats are excavated by time. This is particularly worth pondering for today's enterprises that universally chase short-term gains—true barriers are never purchased but are instead forged through perseverance. The more restless the industry becomes, the more those who persist in doing slow and difficult things will gain an early advantage in the next round of competition.

Fourth, true strength lies in the ability to advance when others have stalled.

In September 2026, while a significant number of peers experienced growth stagnation, BYD still achieved a 17% growth at the scale of 400,000 vehicles. This was not just another round of high-speed growth but one achieved under adverse conditions—a distinction that changes its intrinsic value. Faced with the same economic environment and the same industry track, why do some remain stagnant while others surge against the tide? The answer ultimately lies in the enterprise's own capability structure.

463,600 vehicles was the answer sheet BYD delivered in September. But what deserves closer examination beyond this figure is the supporting system behind it: technological heritage, strategic resolve, organizational correction capabilities, and an organization that has systematically transformed every weakness into a strength. The new sales record is merely the outcome; the 'formidable BYD' is the reality itself.