“BYD suffers largest quarterly profit drop in nearly 5 yearsChinese company BYD Co. reported a 33% year-over-year drop in quarterly profit, the largest decline since 2020. Net profit was 7.82 billion yuan, and total revenue decreased by 3% to 194.98 billion yuan.
”, — write: unn.ua
DetailsChinese company BYD reported a drop in quarterly profit.
Net profit for the three months ended September 30 fell 33% from a year earlier to 7.82 billion yuan ($1.1 billion), the company said on Thursday. BYD said total revenue fell about 3% to 194.98 billion yuan, missing the projected 216 billion yuan.
Overall, this is the largest drop in quarterly profit since 2020.
BYD’s problems are related to fierce competition in the domestic market from companies like Geely.
Revenue difficulties for BYD first became apparent when the company reported a shocking 30% drop in profit in the second quarter of this year. Since the beginning of autumn, the Chinese automaker has continued to record a decline in its financial performance. In the domestic market, BYD’s share fell to 14% in September.
The automaker’s gross margin, although it grew in the second quarter of this year, decreased in the next period – from 21.9% to 17.6%.
Overall, in the third quarter, the Shenzhen-based automaker delivered 1.15 million new energy vehicles, including all-electric models and plug-in hybrids. This is 1.8% less than a year earlier.
Competitors had a different result. Geely Automobile Holdings and Chongqing Changan Automobile Co. reported sales increases of 96% and 84% respectively.
Analysts attribute BYD’s sales slowdown mainly to the automaker’s efforts to reduce inventory before the release of 2026 models.
According to a preliminary note published by Citigroup Inc., the automaker’s absolute and relative inventory levels decreased in September compared to the previous month.
BYD, having “freed itself” from inventory, may again be popular in the market .. thanks to cost advantages over competitors
The company’s export structure will significantly improve in the first quarter of 2026, analysts promise.
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