BYD shares drop 8% as Q2 profit slides amid growing competition

Published 01/09/2025, 05:34
© Reuters.

Investing.com-- Shares of Chinese electric vehicle maker BYD Co (HK:1211) dropped 8% to a near five-month low on Monday after the company reported a sharp drop in second-quarter net profit.

BYD’s net income declined 30% year-on-year to 6.4 billion yuan ($895 million), marking its first quarterly profit decrease in over three years.

The company attributed the drop to intense domestic price competition and a 1 billion yuan incentive paid to dealers, which had limited impact on boosting sales.

BYD sold 2.49 million vehicles by the end of July, reaching 45% of its 2025 global sales target of 5.5 million units. Gross margins fell to 16.3% from 18.7% a year earlier.

Hong Kong-listed shares of the company dropped as much as 8% to HK$105.20, reaching their lowest level since early April.

Despite domestic pressures, BYD reported strong international sales, with overseas EV and plug-in hybrid deliveries doubling to 550,000 units in the first seven months of the year.

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