BYD’s four-year profit run ends, eyes global markets as next engine of growth

China’s electric vehicle (EV) king BYD posted its first annual profit drop in four years as it faced intensifying competition from domestic rivals in a cutthroat market.The Shenzhen-based company reported a net profit of 32.6 billion yuan (US$4.72 billion) for 2025, down 18.97 per cent from a year earlier, according to a filing to the Hong Kong and Shenzhen stock exchanges. That missed a consensus forecast of 35.4 billion yuan in a Bloomberg survey of analysts.Revenue grew 3.46 per cent to 803.9 billion yuan.“It has been difficult for BYD to sustain high growth in the domestic market since last year, but its overseas expansion in the years to come is worth watching because of the strong market potential abroad,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. “With higher profit margins, rising sales outside China could technically boost its profitability.”BYD, which has produced only pure electric and plug-in hybrid cars since it stopped making petrol vehicles in 2022, delivered 4.6 million vehicles at home and abroad in 2025, up 7.7 per cent from a year earlier. That marked a sharp slowdown from the 41 per cent growth recorded in 2024. Overseas deliveries rose 151 per cent to just over 1.05 million unitsAnalysts say that Chinese carmakers’ margins – currently just 5,000 yuan on domestic markets – could rise to as much as 20,000 yuan on overseas markets. Photo: AFPLooking to offset weak domestic demand, the company is targeting 1.3 million overseas sales this year, up about 24 per cent from 2025, helped by new model launches and an expanded sales network, Li Yunfei, general manager for branding and public relations, said in January.