BYD’s profit dropped for the first time in more than three years last quarter, amid the Chinese government’s efforts to discourage price cuts on electric vehicles.
Net income was down 29.9% year-over-year to CN¥6.36 billion (US$892 million, A$1.36 billion). Revenue was up 14% to ¥200.9 billion.
“During the Period, competition in China’s automotive industry intensified to a fever pitch, with industry malpractices such as ‘one-price policy’ and ‘excessive marketing’ emerging which intensified competition, severely disrupted normal business order and hindered the progress of high-quality industrial development,” wrote BYD.
"As a leading domestic automaker, the Group actively fulfilled its corporate social responsibility by resolutely upholding a fair and orderly market environment and safeguarding the fundamental interests of consumers. The Group remains committed to achieving long-term sustainable development centered on premiumisation, intelligence and globalisation through technical upgrades, efficiency improvements and economies of scale, contributing to the steady and enduring progress of the automotive industry.”
China’s government has repeatedly warned electric vehicle companies to end discounts and slow production in recent months. BYD slashed prices by up to 30% on several of its lower-end models in May.
BYD reported its first monthly drop in deliveries this year in July, falling by around 36,600 units from June to just 341,030. Other Chinese electric vehicle companies like Nio and Li Auto also posted declines in July, though Xpeng, Xiaomi, and Leapmotor saw growth continue.
Across the first half of 2025, BYD’s net profit was CN¥16.04 billion, up from ¥14.11 billion year-over-year. Operating profit was ¥18.72 billion, rising from ¥17.32 billion.
Revenue in mainland China, Hong Kong, Macau, and Taiwan was CN¥235.92 billion during the year’s first half, up nearly ¥25 billion, and overseas revenue grew by more than ¥45 billion to ¥135.36 billion.
Its revenue from automobile-related products rose by 32.49% to CN¥302.51 billion in the six months to June, while revenue from its handset components and assembly services fell by 5.54% to ¥68.74 billion.
“In the second half of 2025, the Group will adhere to its development strategy, strengthen the independence and controllability of its core technologies, and continue to enhance the competitiveness of its products,” wrote BYD. It plans to accelerate its international expansion, the company said.
BYD’s (SEHK: 1211) share price was HK$108.10 at the time of writing, down 5.4% from its previous close at $114.40. Its market capitalisation is CN¥973.07 billion.
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