BYD’s revenue hit a record 804 billion yuan in 2025 — but annual net profit fell 19% to 32.6 billion yuan after fierce price competition in China squeezed margins. Domestic sales slid and early-2026 deliveries weakened; the company has cut staff, pushed harder into exports and is rolling out premium models and battery investment to try to restore per-vehicle profits.

Profit slide despite record revenue BYD’s full-year results showed a clear split: revenue rose to a record 804 billion yuan in 2025, while net income fell to 32.6 billion yuan, down 19% from 2024. Company officials and analysts pointed to intense price competition in China as the main cause of the profit decline. Chief Executive and founder Wang Chuan-fu described competition as having entered a brutal stage. The company highlighted ongoing investment in new technology even as domestic margins come under pressure. Sales slump and shrinking domestic margins Sales momentum slowed heading into 2026, with consecutive months of falling domestic volume and weaker deliveries early in the year. Lower plant utilization and thinner per-car returns at home have compressed gross and net margins, helping explain BYD’s increased focus on overseas markets where per-vehicle profits are relatively higher. Workforce cuts and operational moves To align costs with softer domestic demand, BYD has reduced staff and adjusted fixed costs while redirecting investment toward overseas production and charging infrastructure. The company is also expanding its fast-charging network and promoting next-generation battery technology as differentiators in global markets. - Market reports indicate job cuts to match lower domestic volumes. - BYD says production continued after an isolated April fire at its Shenzhen headquarters; there were no injuries. Export push and a move upmarket Facing margin pressure in China, BYD has increased its export focus and raised its overseas targets for 2026. The company shipped more EVs abroad last year and has stepped up international deliveries early in 2026. BYD’s international strategy includes building factories in Southeast Asia, Europe and Latin America to support exports and local sales, alongside new higher-end models intended to lift per-vehicle profitability.

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BYD reported annual net profit of 32.6 billion yuan for 2025, a 19% drop from 2024. The company has raised its overseas targets for 2026 and is betting exports, premium models and battery advances can restore per-vehicle margins.

This article was created with AI assistance.