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Chinese electric vehicle leader BYD reported a 19% decline in annual net profit for 2025, a result of intensifying domestic competition and cooling consumer demand.
According to a Hong Kong Stock Exchange filing on Friday, the company’s net profit fell to 32.6 billion yuan ($4.7 billion), down from 40.3 billion yuan the previous year.
Despite the dip in earnings, BYD achieved a record 804 billion yuan in annual revenue and maintained its global leadership in new energy vehicle sales, delivering 4.6 million units throughout the year.
The profit squeeze highlights the “brutal knockout stage” of China’s EV market, as described by BYD Chairman Wang Chuanfu.
To maintain its dominant market share against rivals like Tesla and Geely, the company implemented aggressive trade-in discounts and price cuts that ultimately eroded its margins.
This domestic pressure has accelerated BYD’s international push; the automaker now operates in 119 countries and saw its European Union sales surge by over 272% in late 2025, reflecting a strategic shift toward more profitable overseas markets.
While the 2025 results missed analyst expectations, BYD entered 2026 with significant technological momentum.
The company recently unveiled its second-generation Blade Battery, featuring “flash charging” capabilities that can reach 97% capacity in just nine minutes.
As the industry transitions from rapid expansion to market saturation, BYD’s ability to leverage its vertically integrated supply chain and innovations will be critical in stabilising its long-term profitability.
