Chinese electric vehicle giant BYD reported on Friday that its annual net profit in 2025 fell 19 percent from 2024, as the company faced weak domestic spending and intense competition while pursuing overseas growth. Net profit attributable to shareholders last year was 32.6 billion yuan ($4.7 billion), down from 40.3 billion yuan in 2024, according to a filing with the Hong Kong Stock Exce.
Despite the decline, BYD remains a leader in China’s highly competitive electric vehicle market, the largest in the world. The company, which uses the English slogan Build Your Dreams, recorded revenue of 804 billion yuan in 2025, up 3.5 percent from the previous year. BYD’s revenue had already surpassed that of American rival Tesla in 2024, crossing the symbolic 100 billion dollar mark at 777 billion yuan.
The slowdown comes after sustained rapid growth, with the company reporting a record profit in the first quarter of 2025. However, its third quarter profit fell 33 percent year-on-year, marking a second consecutive quarterly decline. BYD Chairman Wang Chuanfu described competition in China’s new energy vehicle market as reaching a brutal knockout stage, intensified by price wars and trade-in discounts.
BYD is also expanding aggressively overseas, with vehicles now operating in 119 countries and regions worldwide. In the European Union, it sold more than 13,000 units in September, a 272.1 percent year-on-year increase, according to the European Automobile Manufacturers’ Association.
The company’s strategy reflects the challenges of balancing domestic market pressures with ambitious global expansion as BYD seeks to maintain its position as a top player in the global electric vehicle industry.
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