BYD profit falls 30% as price war, weaker demand hit China’s EV giant

Share via: BYD reported a 30 per cent drop in quarterly profit, with net income sliding to 6.36 billion yuan ($892 million) in the April–June quarter. Revenue too came in below expectations at 200.9 billion yuan. …Read More BYD reported a 30 per cent drop in quarterly profit, with net income sliding to 6.36 billion yuan ($892 million) in the April–June quarter View Personalised Offers on Check Offers China’s biggest electric-car maker, BYD, is facing the sharp edge of competition at home. The company reported a 30 per cent drop in quarterly profit, with net income sliding to 6.36 billion yuan ($892 million) in the April–June quarter. Revenue too came in below expectations at 200.9 billion yuan, marking one of the toughest financial updates for a brand that has until recently been celebrated as the face of China’s EV boom. BYD’s troubles are rooted in the brutal price war sweeping through China’s EV industry. Deep discounting, designed to protect market share against rivals like Tesla and newer domestic challengers, has come at a cost. Gross margins shrank to 16.3 per cent, the weakest level since early 2023. For investors, the message was clear, holding on to volume is proving more expensive than anyone had imagined. Also Read : BYD Atto 2 electric SUV spied in India, launch likely soon Chasing an ambitious targetThe company sold 2.15 million vehicles in the first half of 2024, up 33 per cent from a year earlier. But that figure is just under 40 per cent of BYD’s ambitious annual target of 5.5 million vehicles. That means the second half of the year will demand a scorching pace of deliveries if the goal is to be met. July’s sales, which sputtered, have already cast doubt on whether BYD can close the gap. A closer look at sales reveals an important shift. Fully electric vehicles continued to expand in the second quarter, but hybrid sales slipped compared to a year earlier. This shift underscores how consumer preferences in China are evolving, and how dependent BYD may become on pure battery EVs to sustain momentum. Looking beyond China’s bordersInternational markets are quickly moving from aspiration to necessity for BYD. In the second quarter, its Thai unit shipped EVs to Europe for the first time, reaching the UK, Germany, and Belgium. It is a small but symbolic step, Europe is one of the world’s most competitive auto markets, and success there will be key to BYD’s long-term global ambitions. For the first six months of the year, BYD reported net income of 15.5 billion yuan, with revenue rising 23 per cent to 371.3 billion yuan. But the headline numbers hide the bigger worry: an increasingly crowded home market where price wars show no sign of easing. With Beijing attempting to cool the discount frenzy and demand slowing in the summer, the second half of the year could determine not just whether BYD hits its target, but how much profitability it must sacrifice to get there. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 31 Aug 2025, 09:00 am IST
Source: hindustantimes.com