BYD Posts First Annual Profit Drop in Four Years

BEIJING: BYD, China’s largest electric vehicle manufacturer by sales, reported its first annual profit drop in four years, posting a 19% decline in net profit to 32.6 billion yuan.

The company attributed the downturn to weakening domestic demand, fierce competition, and a shrinking margin. Revenue grew just 3.5%, the slowest pace in six years. BYD also cut its workforce by 10.2% to 869,622 employees.

The automaker's gross profit margin fell to 20.5%, down from 22.3% last year. Its core budget segment-cars priced under 150,000 yuan-accounted for over 61% of domestic sales. However, revised subsidy policies favor higher-priced models, limiting recovery.

Despite this, international sales grew 5%. Analysts say BYD must focus on global expansion and technology upgrades to remain competitive.

BYD’s shares rose slightly in Hong Kong and Shenzhen, though concerns persist over its earnings outlook.