BYD profit slumps as its car sales in China falter
Chinese electric vehicle manufacturer BYD’s quarterly profit fell at its fastest rate since 2020, according to stock market records, due to stagnant domestic sales and increased 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 the third quarter for domestic sales volumes to rebound sequentially in the second quarter 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 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 largest Chinese rival, although it did not announce an overall sales target, said that it was confident that it would reach its 2026 overseas sales target of 1.5 million vehicles or even a higher figure, which means a growth of over 40 percent 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 upmarket segment and increasing competition with European premium brands.
