Chinese automotive manufacturer BYD has reported a sharp decline in its financial performance for the first quarter of 2026. According to the Financial Times, the company’s net profit plummeted by 55% year-on-year to $600 mln.
Revenue for the period leading up to April 1 also experienced a downturn, falling by 11.8% to $21.9 bn compared with the same timeframe last year.
The Financial Times noted that these figures reflect a recent slump in BYD’s domestic sales, particularly throughout January and February. This downturn follows a prolonged period of explosive growth and coincides with the gradual phasing out of government subsidies for electric vehicle purchases in China.
Domestic market recovers
However, the financial blow was partially mitigated by a domestic market recovery in March alongside a notable boost in exports. Global interest in BYD’s electric fleet has increased significantly due to the ongoing military conflict in the Middle East as consumers increasingly look to shift away from traditional petrol and diesel engines.
Data from Shanghai-based consultancy Automobility indicates that BYD still maintains the largest slice of the new energy vehicle market in China at approximately 20%. Nevertheless, the recent slowdown in sales growth has exposed the manufacturer to intensifying competition from rival Chinese technology and automotive firms such as Geely, Leapmotor, Xiaomi and Huawei.
Despite these immediate market headwinds, analysts at Citi remain optimistic about the brand’s long-term trajectory. They project that BYD will sell more than five mln vehicles this year, a solid increase from the 4.6 mln units shifted in the previous 12 months.
Meanwhile, the company is looking for high-profile arenas to demonstrate its engineering prowess. Speaking to journalists on the sidelines of the Beijing Auto Show, BYD Executive Vice President Stella Li revealed that the manufacturer is actively exploring opportunities to participate in global motorsport. She specifically highlighted Formula 1 as a potential platform to showcase the brand’s cutting-edge technology to a worldwide audience.
