BYD profit slumps as Chinese EV maker shifts focus to overseas markets
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The news: Chinese EV maker BYD reported a 33% fall in quarterly profit as domestic competition and industry scrutiny in China heap pressure onto the company’s sales outlook.
The numbers: BYD’s profit fell to 7.82 billion yuan ($1.68 billion), a 33% decline from the year prior, while the company said total revenue dropped around 3% to 194.98 billion yuan, missing estimates for 216 billion yuan.
The automaker delivered 1.15 million new-energy vehicles, including pure-electric models and plug-in hybrids, in the third quarter, down 1.8% from a year earlier.
While BYD previously cut its 2025 sales goal by 16% to 4.6 million unites, it did not provide an official figure for sales objectives in Thursday’s results.
The context: An ongoing price war in China is weighing heavily on the world’s biggest EV maker, which has intensified to the point that the government is concerned the brutal competition could impact product quality.
While the company is the key global rival to Elon Musk’s Tesla, its weakening third-quarter results, on the back of a 30% second-quarter profit plunge, indicate a persistent slowdown after rapid growth. Shares have fallen more than 30 per cent from the company’s peak in May.
BYD’s efforts to bolster global growth saw its overseas sales volume expand 160% from a year earlier in the third quarter, fuelled by demand across Europe and Latin America, according to previously released figures.
The source: BYD earnings
