SHANGHAI, Oct. 11 -- After a meteoric five-year rise that saw it surpass Tesla Inc. as the world's top seller of electric vehicles, Chinese auto giant BYD Co. is now facing a significant reality check as its sales momentum stalls and regulatory pressures mount.

What was expected to be another blockbuster year has instead become the company's toughest stretch since 2020.

In its home market of China, a regulatory crackdown on the fierce price war that fuelled BYD's growth has blunted its competitive edge, Bloomberg reported.

In the third quarter of 2025, the company experienced its first year-on-year drop in total sales since 2020, forcing it to scale back its annual sales target from 5.5 million to 4.6 million vehicles.

The slowdown is...