Chinese electric vehicle (EV) manufacturer BYD has experienced a decline in quarterly profits, amid a severe price war in China.
The company’s net profit for the second quarter (Q2) fell by 29.9% to 6.4bn yuan ($894.7m), a significant trend reversal from the 100.4% increase seen in the previous quarter.
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Despite the downturn in profit, BYD reported a 14% rise in revenues, reaching 200bn yuan for the quarter ending June 30.
However, the company’s vehicle sales in the first half (H1) of the year, totalling 2.15 million units, fell slightly short of being on track for its annual goal of 5.5 million battery-electric and plug-in hybrid cars, representing only 40% of the target, as per Bloomberg’s data.
The second half of the year poses further challenges for the EV maker, especially after its aggressive discounting strategy earlier in the year attracted scrutiny from authorities in Beijing.
The Chinese government is actively trying to curb price wars in the industry, which it believes could threaten the financial stability of even the most well-funded manufacturers. Despite these efforts, major brands have continued to reduce prices.
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By GlobalDataBYD also noted a shift in its domestic market during Q2, with fully electric car sales remaining strong, but hybrid vehicle sales seeing a reduction compared to the previous year.
In an international expansion move, BYD’s Thai subsidiary began exporting EVs to Europe, marking the company’s first foray into markets such as Germany, Belgium, the UK, as reported by Xinhua.
For the H1 of the year, BYD’s net income reached 15.5bn yuan, with a 23% increase in revenue to 371.3bn yuan, according to the company’s filing.
The company has reported a 100.4% surge, year-on-year, in net profit attributed to the shareholders for the Q1 2025 financial year. Net profit in Q1 reached 9.15bn yuan ($1.3bn).
BYD announced plans to start the assembly of its first electric car in Pakistan by July or August 2026.
