BYD Shares Fall 8% as Quarterly Profit Declines Amid Rising Competition
Shares of Chinese electric vehicle (EV) maker BYD Co (HK:1211) fell 8% on Monday, hitting a near five-month low, after the company posted a sharp decline in second-quarter profit.
Net income dropped 30% year-on-year to 6.4 billion yuan ($895 million), marking the automaker’s first quarterly profit decline in over three years.
BYD said the weaker results were driven by intense domestic price competition and a 1 billion yuan incentive program for dealers, which had only a limited effect on boosting sales.
The company sold 2.49 million vehicles by the end of July, achieving just 45% of its 2025 global sales target of 5.5 million units. Gross margins narrowed to 16.3%, compared with 18.7% a year earlier.
In Hong Kong, BYD’s shares fell as much as 8% to HK$105.20, their lowest level since early April.
Despite challenges at home, BYD saw strong international performance, with overseas sales of EVs and plug-in hybrids doubling to 550,000 units in the first seven months of 2025.
