KATHMANDU: BYD has reported a drop in annual profits for the first time in four years, as aggressive price competition in China’s EV market impacts earnings.
The company posted a full-year net profit of $4.72 billion, down nearly 20 percent from the previous year and below market expectations. The decline was largely driven by weak fourth-quarter performance, with quarterly profit falling 38 percent to around $1.38 billion.
Chairman Wang Chuanfu said competition in China’s EV market has reached a “fever pitch,” describing the ongoing price war as a brutal elimination phase among automakers.
Revenue for the year stood at approximately $116 billion, marking a modest 3.5 percent increase. Growth was supported by strong export performance, with overseas revenue rising 40 percent compared to the previous year.
However, domestic challenges continue. EV sales in China have declined for six straight months amid rising competition and the removal of government subsidies. The company also reported a sharp drop in operating cash flow, while borrowing increased significantly, although it maintained that liquidity remains sufficient.
Despite pressure in China, BYD is expanding globally. The company is increasing exports and investing in overseas production facilities across multiple markets. It has also ordered a fleet of car carrier ships to support international deliveries.
Competition from domestic rivals such as Geely, SAIC Motor, Huawei, and Xiaomi has reduced BYD’s share of China’s EV market to around 17 percent, down from 27 percent a year earlier.
The company, often compared to Tesla, continues to target long-term global growth, aiming for 10 million annual vehicle sales, with half expected from international markets.
