China's leading electric vehicle manufacturer BYD reports a 19 percent yearly drop in net earnings

Chinese electric vehicle giant BYD announced on Friday that its annual net profit in 2025 decreased by 19 percent from the previous year, due to challenges posed by weak spending and intense competition in its domestic market, as well as its efforts to expand globally.

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BYD's net profit attributable to shareholders last year was 32.6 billion yuan, which translates to $4.7 billion, down from 40.3 billion yuan in 2024, according to a filing submitted to the Hong Kong Stock Exchange.

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As the clear leader in China's highly competitive electric vehicle market, the world's largest, BYD has emerged as a dominant player in recent years, with its English slogan "Build Your Dreams" reflecting its ambitious goals.

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Despite China's EV industry being a world leader, the cutthroat domestic market has negatively impacted profitability, prompting BYD and other carmakers to explore overseas markets in search of growth opportunities.

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Scrutiny of the EV market has been increasing, with a top industry group criticizing Chinese automakers in May for fueling a price war, just a week after BYD introduced sweeping trade-in discounts.

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According to BYD's chairman Wang Chuanfu, "Competition in the NEV industry has reached a fever pitch, and is undergoing a brutal 'knockout stage'", highlighting the intense rivalry in the market for new energy vehicles.

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BYD's revenue last year was 804 billion yuan, representing a modest 3.5 percent increase compared to 2024, and surpassing that of its American rival Tesla in 2024, with a revenue of 777 billion yuan that exceeded the $100 billion mark.

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The company's profit in the third quarter of 2025 declined by 33 percent year-on-year, marking its second consecutive quarterly decline, following a period of sustained and intense growth.

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Notably, BYD's profit in the first quarter of 2025 was a record for the company in that reporting period, underscoring the volatility of its financial performance.

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BYD's international expansion efforts appear to be gaining momentum, with its vehicles now operating in 119 countries and regions worldwide, according to Friday's filing.

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In September, the company sold more than 13,000 units in European Union countries, achieving a year-on-year increase of 272.1 percent, as reported by the European Automobile Manufacturers' Association.