BYD profit slumps as its car sales in China falter
Chinese electric vehicle maker BYD’s quarterly profit fell at its fastest pace since 2020, according to stock market records, hit by sluggish domestic sales and intensifying competition.
The world’s largest EV seller, known for its focus on budget models under 150,000 yuan ($30,600), is under pressure from rivals such as Geely and Leapmotor.
The data showed that BYD’s first-quarter net profit fell 55.4 percent year-on-year to $599.46 million ($836.67 million), and recorded a 38.2 percent decline in the fourth quarter.
Revenue fell 11.8 percent, extending the streak of declines to the third consecutive quarter.
“BYD needs to see a more sustained recovery and market share recovery in Q3 for domestic sales volumes to rebound sequentially in Q2 and overall profit to improve,” said Eugene Hsiao, head of China equity strategy at Macquarie Capital.
The pressure has increased as China reduced trade-in subsidies for entry-level electric cars and plug-in hybrids.
BYD’s overall sales declined for the seventh consecutive month in March, despite continued strong growth in overseas shipments.
As its domestic sales face a prolonged decline, BYD is aggressively targeting international markets by focusing on advanced technology or localization of production.
Tesla’s biggest Chinese rival, although it did not announce an overall sales target, said it was confident of reaching its 2026 overseas sales target of 1.5 million vehicles or more, which would mean more than 40 percent growth compared to 2025.
Morningstar analyst Vincent Sun predicted that BYD’s exports will increase 25 percent to 30 percent this year, while total vehicle sales are expected to increase by about 12 percent.
However, if current sales trends continue, overseas sales may not be enough to fully offset domestic weakness, Hsiao said.
Striving to regain its technological edge, BYD is doubling down on ultra-fast charging technology and aims to attract drivers loyal to gasoline cars by easing charging time concerns.
BYD launched pre-sales of its Datang full-size electric SUV at the Beijing auto show on Friday, joining a growing list of Chinese automakers targeting the upper segment and increasing competition with European premium brands.
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