Shanghai, 1 September (Kiran News). Leading Chinese electric vehicle (EV) manufacturer BYD reported a significant drop in quarterly profits as an intense price war continues to grip the Chinese automotive market.
For the second quarter (Q2), BYD’s net profit fell by 29.9% to 6.4 billion yuan ($894.7 million), reversing the positive trend of a 100.4% increase seen in the previous quarter. Despite this, the company posted a 14% year-on-year rise in revenues, reaching 200 billion yuan for the quarter ending June 30.
Sales and Market Dynamics
In the first half of the year (H1), BYD’s vehicle sales reached 2.15 million units, falling slightly short of the pace required to achieve its ambitious annual target of 5.5 million battery-electric and plug-in hybrid vehicles—amounting to only 40% of the goal, according to Bloomberg data.
The price war, triggered by aggressive discounting strategies from various brands, has attracted the attention of Beijing authorities, who are working to limit the practice out of concern for the financial stability of the industry. Nevertheless, several major manufacturers, including BYD, have continued to lower prices.
During Q2, BYD saw a shift in its domestic sales pattern: sales of fully electric vehicles remained robust, while hybrid vehicle sales decreased compared to the previous year.
Global Expansion and Future Plans
In an effort to expand internationally, BYD’s Thai subsidiary recently began exporting EVs to Europe, targeting new markets such as Germany, Belgium, and the UK, as reported by Xinhua. The company also announced plans to begin assembling its first electric car in Pakistan by July or August 2026.
Financial Overview
For H1 2025, BYD’s net income reached 15.5 billion yuan, with a 23% revenue increase to 371.3 billion yuan, according to the company’s filings. Notably, BYD had reported a strong Q1, with net profit surging by 100.4% year-on-year to 9.15 billion yuan ($1.3 billion).
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.