It’s no secret that BYD has been on fire lately. Ever since clinching the title of the world’s top electric vehicle maker in April 2025, the Shenzhen-based giant hasn’t let up. Between record deliveries and the recent unveiling of the sleek Dolphin Surf, BYD is showing no signs of slowing down.
Despite the fanfare, though, the company is finding itself under the microscope at home. Rumors are flying about creative accounting in its sales figures, and competitors are quick to point fingers. Yet through it all, BYD’s leadership is adamant that their books are rock-solid.
With electric vehicle demand soaring worldwide, the stakes have never been higher. How will BYD navigate these choppy waters? Their latest public statements aim to reassure investors—and, let’s face it, stick it to the naysayers.
Facing the Fire: Sales Tactic Accusations
Over the past few weeks, whispers of a so-called “sales-boosting tactic” have turned into full-blown headlines. Critics accuse BYD of inflating their numbers by registering unsold cars as zero-kilometer used vehicles, then offering them at steep discounts. It’s a move designed to clear excess inventory, but it’s not exactly winning popularity contests in Beijing.
The Chinese government itself has reportedly summoned several automakers to explain their accounting practices. Meanwhile, Wei Jianjun, CEO of Great Wall Motor, made waves by likening BYD to Evergrande—China’s troubled real estate colossus. He suggested an “automotive Evergrande” is lurking just beneath the surface, ready to implode.
Of course, BYD wasn’t about to sit back and let the mud stick. Li Yunfei, the company’s public relations chief, took to Weibo to fire back. He declared that Chinese automakers, BYD included, are in far better financial shape than their overseas rivals. For him, Evergrande is a cautionary tale, not a forecast.
Crunching the Numbers: BYD vs. the World
Numbers are Li’s best defense. When critics pointed to BYD’s 70% asset-liability ratio as a red flag, he was quick to compare. Ford clocks in at 84%, and Boeing sits above 100%. Among Chinese peers, Geely is at 68% and Seres at 76%. Suddenly, BYD’s supposedly risky ratio looks positively conservative.
Debt levels tell a similar story. BYD owes roughly 580 billion yuan (about €70 billion), which sounds hefty until you learn that Volkswagen’s debt stands at a whopping 3.4 trillion yuan (€415 billion). Even SAIC, a Chinese heavyweight, carries €74 billion in liabilities. On the interest-bearing debt front—think bank loans and bonds—BYD’s figure of €3 billion pales in comparison to Toyota’s €220 billion.
In short, BYD contends that its financials aren’t just healthy—they’re enviable. Investors looking for balance-sheet comparisons might want to square up BYD’s books against those of legacy automakers and see who comes out on top.
Mythbusting the “Automotive Evergrande” Label
So, is there an “Evergrande of the auto industry” waiting to blow up? BYD’s spokesperson thinks not. He argues that the real estate giant’s woes stemmed from speculative debt structures and skyrocketing project costs—issues that simply don’t apply to automaking.
Instead, Li points to BYD’s 40.3 billion yuan (about €4.9 billion) profit in 2024 and robust R&D spending. Add to that the company’s growing cash reserves, and you’ve got what he calls “the strongest operational performance BYD has seen in 30 years.” No house-of-cards here.
The Road Ahead: What This Means for the Industry
Chinese automakers now control over 60% of their home market, and their global footprint keeps expanding. BYD has even leapfrogged Tesla in Europe at times, grabbing first or second place in EV sales. That’s not just a blip—it’s a sign of where the industry is headed.
With electric mobility reshaping the auto landscape, financial strength is more than just bragging rights. It underpins future investments in technology, capacity, and global distribution. If BYD’s claims hold true, expect more aggressive expansion from Chinese brands—and a whole lot more competition for legacy players.
All told, this financial tug-of-war over ratios, debts, and rumors makes for one exciting ride. Buckle up—because the real EV revolution might only be just getting started.
