BYD Reports First Quarterly Profit Decline Since 2022 on Weakening Sales

BYD, China’s leading new energy vehicle (NEV) manufacturer, reported its first quarterly drop in profit and revenue since 2022, signaling mounting pressure from slowing sales and intense market competition.

According to its third-quarter earnings report for 2025, the company’s net profit attributable to shareholders fell by 32.6% year-on-year to RMB 7.82 billion yuan (approximately US$1.08 billion). Revenue for the quarter also decreased by 3.05% to RMB 195 billion yuan, marking the first time quarterly revenue has declined since 2022. The weak quarter dragged down performance for the first nine months of 2025, with net profit declining 7.55% from the previous year.

The downturn in financial performance is closely linked to a significant sales slowdown. After posting minimal year-on-year sales growth in July and August 2025, the company's vehicle sales in September fell by 5.52% compared to the same month last year—the first such monthly decline. The automotive segment and related products consistently constitute over 80% of BYD's total revenue.

The report also revealed a notable increase in inventory, which could indicate growing operational challenges. By the end of the third quarter, BYD's inventory stood at RMB 153 billion yuan, a 31.8% jump from the end of 2024. The buildup aligns with a disparity between production and sales, with the company producing more vehicles than it sold in September.

This trend comes as China's electric vehicle market faces intensified competition, which prompted BYD to launch several promotional campaigns earlier in 2025. Following the earnings announcement on October 30, the company's A-shares closed down 0.87%.