BYD reported a decline in full-year net profit for 2025, as intense price competition in China’s electric vehicle market continued to pressure margins.
The company posted net profit of 32.62 billion yuan ($4.72 billion), down 19% from a year earlier and below analyst expectations, according to its annual financial report. BYD said the domestic new energy vehicle (NEV) market remains highly competitive, with ongoing price wars eroding profitability.
Revenue rose modestly by 3.46% to 803.97 billion yuan but also fell short of market forecasts, indicating a slowdown in growth momentum amid challenging market conditions.
BYD sold 4.6 million NEVs in 2025, up 7.73% year-on-year and in line with its revised target. The automotive segment remained the core business, generating 648.65 billion yuan, or more than 80% of total revenue, with a 5.06% annual increase.
However, overall gross margin declined to 17.74% from 19.44% a year earlier, reflecting a shift in product mix and aggressive pricing strategies adopted to maintain market share during what the company described as a “knockout stage” for the domestic industry.
Outside China, BYD’s international business showed strong momentum. Overseas NEV exports exceeded 1 million units for the first time, reaching 1.05 million vehicles, up about 140% year-on-year. The company is targeting 1.3 million overseas sales in 2026 as it looks to diversify growth beyond its home market.
BYD also increased investment in research and development, with spending rising 17% to 63.4 billion yuan, as it continues to push technological innovation. Recent developments include its second-generation Blade Battery and flash charging technology, aimed at improving charging speed and vehicle competitiveness.
The company plans to build 20,000 flash-charging stations across China by the end of 2026 to support broader adoption of its electric vehicles.
Despite near-term margin pressure, BYD’s results highlight its scale and continued expansion, particularly in overseas markets, as global competition in the EV sector intensifies.
