BYD reported lower revenue and net profit for the first half of 2026 as weaker new energy vehicle sales in China and foreign-exchange losses offset strong growth in overseas markets. Revenue fell 7.13% year-on-year to 344.82 billion yuan ($50.9 billion), while net profit attributable to shareholders declined 20.54% to 12.33 billion yuan.
NEV Sales Decline in First Half
BYD sold 1,808,511 new energy vehicles (NEVs) during the first half, down 15.72% from the same period a year earlier.
The decline was concentrated in the first quarter, when sales fell 30.01% year-on-year. The pace of decline improved substantially in the second quarter, when NEV sales reached 1,108,048 units, down 3.24% year-on-year.
The weaker automotive business was the main factor behind BYD’s revenue decline.
Revenue from automobiles, related products and other products fell 8.98% to 275.34 billion yuan, accounting for 79.85% of total group revenue.
Revenue from electronics and other products increased 0.96% to 69.41 billion yuan, representing 20.13% of total revenue.
Overseas Sales Continue to Expand
International markets remained a major source of growth for BYD.
The company exported about 792,000 vehicles in the first half, an increase of 67.8% year-on-year. Exports represented around 44% of BYD’s total vehicle sales during the period.
Overseas sales accelerated in the second quarter, reaching 471,091 units, up 82.46% year-on-year and 46.68% from the previous quarter.
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The stronger overseas business also supported BYD’s profitability despite lower overall revenue.
Gross Margin Improves Despite Lower Profit
BYD’s first-half gross profit fell 2.81% to 64.99 billion yuan.
However, gross margin increased to 18.85% from 18.01% a year earlier, reflecting a greater contribution from its overseas NEV business and higher-value vehicle brands.
Combined sales of Denza, Fang Cheng Bao and Yangwang increased 61.0% year-on-year. The three brands accounted for 12.8% of BYD’s passenger-vehicle sales during the first half.
Foreign-exchange losses caused by currency fluctuations also contributed to the decline in net profit.
R&D Spending Remains High
BYD continued to invest heavily in research and development as it expanded its electric vehicle technology and product portfolio.
First-half R&D spending reached approximately 28.9 billion yuan, about 2.3 times the company’s net profit for the period.
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Cumulative R&D investment has now exceeded 270 billion yuan.
Operating cash flow remained stronger than net earnings, with cash inflow from operations increasing 17.3% year-on-year to 37.34 billion yuan during the first half.
Overseas Expansion Increases Inventory Cycle
BYD’s international expansion also affected its inventory turnover.
Inventory turnover days increased to 109 days from 79 days a year earlier. The company attributed the increase to the expansion of its overseas business and longer shipping times.
The longer cycle reflects the logistical requirements associated with distributing vehicles across international markets.
July Sales Return to Growth
BYD’s sales momentum improved further at the beginning of the second half.
July sales increased 21.76% year-on-year to 419,211 vehicles, marking the company’s third consecutive month of year-on-year growth.
Overseas sales of passenger vehicles and pickup trucks reached a record 179,841 units in July, up 124.3% from a year earlier.
International passenger vehicle and pickup sales accounted for around 43% of BYD’s total sales for the month, highlighting the increasing contribution of overseas markets to the company’s overall vehicle business.