Key Takeaways:
(April 28, 2026) — BYD Co.’s first-quarter profit fell by 55 percent, its worst decline in six years, as intense price competition in China’s electric vehicle market eroded margins even as the results beat analyst forecasts.
“The results highlight how China’s fiercely competitive EV market is eroding profitability even for industry leaders like BYD,” Vincent Sun, an analyst at Morningstar, said.
The Shenzhen-based automaker’s net income for the three months ended March 31 was 4.08 billion yuan ($598 million), down from a year earlier, according to a company filing Tuesday. That compared with the 3.45 billion yuan average estimate from analysts surveyed by Visible Alpha. Revenue fell 12 percent to 150.23 billion yuan, also ahead of the 129.09 billion yuan projection.
The profit slump follows a bruising price war in the world’s largest auto market, which has weighed on nearly all manufacturers. While BYD’s total sales volume fell for a seventh straight month in March, its overseas expansion has accelerated, with exports now a key battleground. Nomura analysts estimate that overseas sales will make up nearly 50 percent of BYD’s auto revenue this year.
To combat the domestic slowdown, BYD is banking on technological advancements and a push into higher-end models. The company recently launched a new battery it claims can be fully charged in nine minutes, a feature Citi said could help the automaker lead the market for at least a year. At the Beijing auto show, BYD also began pre-sales for its new Datang full-size electric SUV, challenging premium European brands.
The results from BYD, a major competitor to Tesla Inc., are the first among China’s major EV makers. Analysts widely believe the first quarter marked a trough for the company’s earnings. They project that a combination of new model launches and a robust international rollout will fuel a recovery starting in the current quarter.
The report comes as its subsidiary, BYD ELECTRONIC (00285.HK), reported a 95.5% plunge in its own quarterly net profit, citing exchange losses and changes in product mix.
The sharp first-quarter profit decline signals the severity of the domestic price war, but the beat on analyst estimates suggests BYD is managing the downturn better than feared. Investors will now watch for the company’s April sales figures to see if the momentum from new model launches can reverse the domestic slump.
This article is for informational purposes only and does not constitute investment advice.
