BYD’s four-year profit run ends, eyes global markets as next engine of growth

he Shenzhen-based company reported a net profit of 32.6 billion yuan (US$4.72 billion) for 2025, down 18.97 per cent from a year earlier.

Photo: Reuters China’s electric vehicle (EV) king BYD posted its first annual profit drop in four years as it faced intensifying competition from domestic rivals in a cutthroat market.

The Shenzhen-based company reported a net profit of 32.6 billion yuan (US$4.72 billion) for 2025, down 18.97 per cent from a year earlier, according to a filing to the Hong Kong and Shenzhen stock exchanges.

That missed a consensus forecast of 35.4 billion yuan in a Bloomberg survey of analysts.

Revenue grew 3.46 per cent to 803.9 billion yuan. “It has been difficult for BYD to sustain high growth in the domestic market since last year, but its overseas expansion in the years to come is worth watching because of the strong market potential abroad,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. “With higher profit margins, rising sales outside China could technically boost its profitability.” BYD, which has produced only pure electric and plug-in hybrid cars since it stopped making petrol vehicles in 2022, delivered 4.6 million vehicles at home and abroad in 2025, up 7.7 per cent from a year earlier.

That marked a sharp slowdown from the 41 per cent growth recorded in 2024.

Overseas deliveries rose 151 per cent to just over 1.05 million units Analysts say that Chinese carmakers’ margins – currently just 5,000 yuan on domestic markets – could rise to as much as 20,000 yuan on overseas markets.

Photo: AFP Looking to offset weak domestic demand, the company is targeting 1.3 million overseas sales this year, up about 24 per cent from 2025, helped by new model launches and an expanded sales network, Li Yunfei, general manager for branding and public relations, said in January.

On the mainland, Chinese carmakers’ average net margin per vehicle — the gap between the selling price and production cost — stood at about 5,000 yuan, according to Nick Lai, head of auto research for Asia-Pacific at JPMorgan Chase.

In October, he said that margin could rise fourfold to 20,000 yuan in overseas markets, where Chinese cars can command higher prices.

Controlled by founder Wang Chuanfu, BYD has been the mainland’s biggest carmaker since 2024, buoyed by the rapid adoption of EVs in the world’s largest auto market.

But its momentum has faltered this year.

In the first two months of 2026, BYD’s sales, including its exports, plu

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