BEIJING, April 28 - Chinese electric vehicle manufacturer BYD reported a marked downturn in its first-quarter results, disclosing a 55.4% year-on-year fall in net profit to 4.1 billion yuan. The company said first-quarter revenue declined 11.8% to 150.2 billion yuan, extending a contraction in top-line performance into a third consecutive quarter.
The rate of profit decline is the steepest BYD has registered since 2020, and it follows an already-sharp 38.2% drop recorded in the fourth quarter. The results underscore mounting pressure on the automaker as domestic demand softens.
BYD's product strategy historically emphasizes lower-priced models, many priced under 150,000 yuan, a segment that has been directly affected as China trims trade-in subsidies for entry-level electric vehicles and plug-in hybrids. At the same time, competition at home has intensified from rivals such as Geely and Leapmotor, further eroding BYD's near-term domestic performance.
Sales trends reflect that weakness: the company reported an overall domestic sales decline for a seventh consecutive month in March, even as shipments abroad continued to grow strongly. In response to the prolonged domestic slump, BYD is stepping up efforts overseas, stressing advanced technology and local manufacturing as pillars of its international push.
Management has expressed confidence in meeting its 2026 overseas sales objective of 1.5 million vehicles or potentially exceeding that figure. The company noted that achieving the 1.5 million target would imply growth of more than 40% from 2025. However, BYD has not published an overall company-wide sales target.
Outside analysts cited in company commentary provided specific forecasts for exports and total sales. Vincent Sun of Morningstar projected BYD's exports would increase by 25% to 30% in the current year, while total vehicle sales were expected to rise by about 12%.
Seeking to shore up its competitive position, BYD is intensifying development of ultra-fast charging technology, positioning the capability as a means to attract drivers who remain loyal to petrol-powered cars by reducing charging-time concerns.
On the product front, BYD launched pre-sales for the Datang full-size electric SUV at the Beijing auto show on Friday, moving further into higher-end segments and stepping up competition with European premium brands.
For reference, the exchange rate used in company disclosures equated $1 to 6.8359 Chinese yuan renminbi.
Separately, an AI-driven stock selection service referenced the company ticker 002594 and described its approach to evaluating listed firms. The service stated it reviews thousands of companies monthly across more than 100 financial metrics, aiming to identify attractive risk-reward profiles. The promotional material cited past notable winners it attributed to the service and invited readers to compare whether 002594 appears in its strategies or whether alternative opportunities exist in the same sector.