BYD Reports Slower Domestic Growth Amid Fierce Competition Despite Strong Overseas Sales
Chinese electric vehicle manufacturer BYD reported mixed financial results for the first half of the year, with a decline in domestic demand and rising competition impacting its performance. While second-quarter net profit rose by 30% to 8.2 billion yuan ($1.2 billion), revenue fell slightly by 3%. For the full six months, total revenue dropped 7.1%, and net profit declined by 20.5%. The company attributed these challenges to sluggish domestic demand and rising costs for raw materials and components. Despite this, BYD's export volumes surged by 67.8% year on year in H1, reaching nearly 800,000 vehicles. Sales of its FANGCHENGBAO, Denza, and Yangwang brands also grew significantly within China, rising 61%. Citi analysts expect continued growth into the third quarter with core earnings projected at 13.5 billion yuan. The news led to a nearly 5% drop in BYD's Hong Kong-listed shares on Monday.
Topics: automotive china-market electric-vehicles profitability revenue