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BYD posts first quarterly profit rise in over a year as exports hit record
BYD's second-quarter net profit rose 29.8% to 8.2 billion yuan ($1.22 billion), ending four straight quarters of decline, as record exports offset weak domestic demand in China.
By George Kensington · 3 min read
BYD has reported its first quarterly profit increase in more than a year, with net profit for the second quarter rising 29.8% to 8.2 billion yuan ($1.22 billion). The rebound ends four consecutive quarters of profit declines and reverses the 55.4% collapse the company recorded just three months earlier.
The recovery was driven by a record surge in exports, which offset persistently weak demand in the Chinese domestic market. The Shenzhen-based automaker has been expanding aggressively into overseas markets, particularly in Southeast Asia, Latin America, and Europe, as competition at home intensifies and price wars continue to pressure margins across the industry.
BYD's export push comes at a time when Chinese consumers remain cautious about big-ticket purchases, with the domestic electric vehicle market showing signs of saturation. The company has responded by prioritising international growth, shipping vehicles to markets where demand for affordable electric cars remains strong and where its vertically integrated supply chain gives it a cost advantage over local rivals.
The second-quarter performance marks a significant turnaround for the company, which had been struggling with declining profitability amid fierce competition from domestic rivals such as Geely and Chery, as well as from global manufacturers scaling up their electric offerings. The profit rebound suggests that BYD's strategy of diversifying its revenue base beyond China is beginning to pay off.
Analysts will be watching whether the momentum can be sustained in the second half of the year, particularly as trade barriers and tariffs on Chinese-made electric vehicles in Western markets continue to pose a risk. The European Union has already imposed additional duties on Chinese EV imports, and further restrictions could dampen the export growth that has become central to BYD's profitability.
Despite these headwinds, the company remains one of the world's largest sellers of electric and plug-in hybrid vehicles, with a product lineup spanning from budget hatchbacks to luxury sedans. Its ability to maintain profit growth while navigating a challenging domestic market will be a key test of its long-term resilience as the global automotive industry transitions away from combustion engines.
