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BYD Reports First Profit Drop Since 2021 in China Price War

A fierce China price war is pushing BYD to seek higher-margin growth overseas.

Overview

  • BYD, which reported full-year results Friday, said 2025 net profit fell 19% to 32.6 billion yuan, missing the 35.4 billion yuan analyst consensus and marking its first annual decline since 2021.
  • Revenue rose 3.5% to 803.9 billion yuan as vehicle deliveries hit a record 4.6 million, a gap that signals lower average prices after repeated cuts to stay competitive.
  • Company leaders said a bruising price fight in China is eroding margins and weakening home-market demand, with January–February 2026 sales down 36% from a year earlier.
  • Overseas shipments topped 1.05 million vehicles in 2025, and the company is targeting 1.3 million sales abroad in 2026 to tap higher per-car profit outside China.
  • To support that push, BYD is adding eight car-carrying ships, expanding factories in Brazil, Hungary, Indonesia, Thailand, Turkey and Uzbekistan, and funding a new R&D center near Rio de Janeiro.