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BYD · China Competition · EV Market · Profit Decline
BYD, the largest electric vehicle maker, reported its annual profit fell 19% to 32.6 billion yuan ($4.7 billion) in 2025, marking its first decline since 2021, despite achieving record annual sales of $116 billion.
This profit contraction occurred amidst cutthroat competition and a fierce price war within China, which significantly impacted the company's profitability. While BYD's revenue grew 3.5% to 804 billion yuan ($116 billion) in 2025, surpassing Tesla's $94.8 billion, and it overtook Tesla as the world's biggest EV maker by selling 2.26 million EVs (up 28%) compared to Tesla's 1.64 million (down 9%), domestic sales have been declining for six consecutive months, with January-February sales down 36% year-on-year.
Chairman Wang Chuan-fu stated the new energy vehicle industry is in a "brutal 'knockout stage'." To counter domestic weakness, BYD is expanding into global markets like Latin America and Europe, where profit margins are higher, and aims to sell 1.3 million vehicles overseas in 2026. The company is also banking on technology upgrades, including a new fast-charging "blade" EV battery and new models like the Datang SUV, to regain market share, as noted by analysts Chris Liu of Omdia and Claire Yuan of S&P Global Ratings.
