BYD’s quarterly profit slides fastest in six years as China sales falter
Its earnings fall 55.4% from the year before to 4.1 billion yuan
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[BEIJING] Chinese electric vehicle maker BYD’s quarterly profit fell at its fastest pace since 2020, a stock market filing showed on Tuesday (Apr 28), amid sluggish sales at home.
The world’s biggest electric vehicle maker by sales, known for its focus on budget models priced under 150,000 yuan (S$28,000), is grappling with intensifying competition from rivals, including Geely and Leapmotor.
BYD’s first-quarter net profit dropped 55.4 per cent from the year before to 4.1 billion yuan, worsening a 38.2 per cent fall in the fourth quarter, the data showed.
Its Q1 revenue was down 11.8 per cent at 150.2 billion yuan, extending a declining streak to a third straight quarter.
The pressure has mounted as China scaled back trade-in subsidies for entry-level electric cars and plug-in hybrids. BYD’s overall sales declined for a seventh straight month in March, despite sustained strong growth in overseas shipments.
As its domestic sales experienced a prolonged slump, it is aggressively targeting international markets with a focus on advanced technology or manufacturing localisation.
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The biggest Chinese competitor to Tesla has said that it was confident of reaching its 2026 overseas sales target of 1.5 million vehicles or higher, implying growth of more than 40 per cent from 2025, though it has not disclosed an overall sales target.
Vincent Sun, an analyst at Morningstar, projected that its exports would rise 25 to 30 per cent this year, while total vehicle sales were expected to grow about 12 per cent.
Seeking to regain its technological edge, BYD is doubling down on ultra-fast charging technology, aiming to lure drivers loyal to petrol-powered cars by easing charging time concerns.
BYD kicked off pre-sales for its Datang full-size electric sports utility vehicle at the Beijing auto show on Apr 24, joining a growing list of Chinese carmakers targeting the higher-end segment and stepping up competition with European premium brands. REUTERS
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