BYD's Quarterly Profit Hits 3-Year Low on Price Cuts

BYD Co. experienced a substantial 55% decrease in net income for the first quarter, reaching its lowest point in over three years with 4.08 billion yuan ($597 million). This financial downturn reflects the intense competition within the electric vehicle market, compelling the Shenzhen-based automaker to implement aggressive price reductions.

Revenue also saw a 12% decline, totaling 150.2 billion yuan. The pressure from competitors like Xiaomi Corp. and Geely Automobile Holdings Ltd. led to discounts reaching their highest level in two years in March, impacting per-vehicle profit margins.

Despite domestic challenges, BYD reported significant growth in international markets, with overseas sales increasing by over 50%. This surge positions the company favorably to achieve its annual export target of 1.5 million vehicles outside China. The recent launch of the Great Tang SUV, featuring advanced blade batteries and a nearly 1,000-kilometer range, has also generated substantial pre-orders, signaling a potential recovery. Analysts anticipate margin pressure may ease in subsequent quarters as new models gain traction and global energy concerns drive demand for EVs and energy storage solutions.