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BYD’s Quarterly Profit Falls Nearly 30% as China Price War Bites

A price war at home is eroding margins despite rapid growth in overseas deliveries.

Overview

  • Net profit dropped 29.9% to 6.4 billion yuan in Q2 while revenue rose 14% to 200.9 billion yuan.
  • First-half earnings increased about 14% to 15.5 billion yuan but came in below analyst expectations.
  • Overseas deliveries jumped 144.7% year over year to 258,182 vehicles in the quarter, offsetting only part of domestic weakness.
  • BYD is tracking behind its 5.5 million 2025 sales goal, with 2.49 million vehicles sold in the first seven months and recent declines in China sales and output.
  • Balance-sheet strain intensified, with a working-capital deficit widening to 122.7 billion yuan and a debt-to-asset ratio of 71.1%, as authorities push carmakers to curb price cuts and pay suppliers faster.