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StocksMediumUpdated•Originally published 30 March 2026•Updated 30 March 2026•
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BYD Reports First Profit Decline in Four Years Amid Chinese EV Price War

Key Facts

1BYD reported its first annual profit decline in four years, with net profit falling 19% to 32.6 billion yuan.
2Revenue increased by only 3.5%, marking the company’s weakest top-line growth in six years.
3Auto gross profit margin fell to 20.5% due to the intense price war in China.
4The company is targeting 1.5 million overseas vehicle sales in 2026.

BYD reported its first annual profit decline in four years for 2025, with net profit falling 19% to 32.6 billion yuan. Despite the earnings drop, the company achieved a major milestone by outselling Tesla in passenger electric vehicles globally last year. Revenue growth slowed to 3.5%, reflecting the intense price war in the Chinese market that compressed automotive gross margins to 20.5%. In response to these competitive pressures, Tesla is reportedly pivoting its strategy toward new opportunities to maintain its market relevance. Meanwhile, BYD is targeting aggressive global expansion, aiming for 1.5 million overseas sales by 2026 to offset domestic headwinds. Analysts suggest that while BYD leads in volume, the results underscore the significant profitability hurdles facing the EV sector due to fading subsidies and fierce competition.