BYD China reports its biggest quarterly loss in four years

BYD, the Chinese electric vehicle manufacturer, saw its third-quarter profits drop 32.6% on an annual basis. This is the second consecutive quarterly decline, and it's also their biggest fall in four years. They are facing increased competition from domestic competitors.

According to a filing made on Thursday, net profit was 7.8 billion yuan (about $1.10 billion), while revenue fell 3.1% from the previous year to 195 billion, marking the first decline of this magnitude in over five years.

BYD's quarterly profit has fallen for the second time in a row as it faces stiffer competition on its home market, from companies like Geely and Leapmotor who have taken share away from BYD within the budget car segment. BYD's share of the domestic market dropped from 18% to 14% in Septembre, a drop from 18% one year ago.

BYD is China's largest automaker and has reduced its target sales for 2025 to 4.6 millions vehicles by 16%. However, it still expects that its EV exports will double from 2024. Europe will be among the fastest-growing markets.

BYD also plans to expand its presence in Japan, debuting a mini-EV made for Japan at the Japan Mobility Show which opens on Friday.

Last month, the automaker introduced a new round discounts on certain models, including the Qin Plus. This was to remain competitive in China where 80% of their cars are sold.

BYD has seen its quarterly sales of cars fall for the first quarter since 2020. Production at BYD mega factories is also on a downward trend.

(source: Reuters)