- BYD's Q1 net profit -55.4% y/y, steepest drop since 2020
- Sales at home slid further amid intensifying competition
- Pivoting to overseas markets, pushing new technologies
BEIJING, April 28 (Reuters) - Chinese electric vehicle maker BYD's quarterly profit fell at its fastest pace since 2020, a stock market filing showed on Tuesday, amid sluggish sales at home.
The world's biggest electric vehicle maker by sales, known for its focus on budget models priced under 150,000 yuan, is grappling with intensifying competition from rivals including Geely and Leapmotor.
BYD's first quarter net profit dropped 55.4% from a year earlier to 4.1 billion yuan ($600 million), worsening a 38.2% fall in the fourth quarter, the data showed.
First-quarter revenue was down 11.8% to 150.2 billion yuan, extending a declining streak to a third straight quarter.
Pressure has mounted as China scales back trade‑in subsidies for entry‑level electric cars and plug‑in hybrids. BYD's overall sales declined for a seventh straight month in March, despite sustained strong growth in overseas shipments.
As its domestic sales face a prolonged slump, BYD is aggressively targeting international markets with a focus on advanced technology or manufacturing localization.
The biggest Chinese competitor to Tesla has said it is confident of reaching its 2026 overseas sales target of 1.5 million vehicles or even higher, implying growth of over 40% from 2025, though it has not disclosed an overall sales target.
Vincent Sun, an analyst at Morningstar, projected BYD's exports would rise 25% to 30% this year, while total vehicle sales are expected to grow about 12%.
Seeking to regain its technological edge, BYD is doubling down on ultra-fast charging technology, aiming to lure drivers loyal to petrol-powered cars by easing charging time concerns.
BYD kicked off pre-sales for its Datang full-size electric SUV at the Beijing auto show on Friday, joining a growing list of Chinese carmakers targeting the higher-end segment and stepping up competition with European premium brands.
($1 = 6.8359 Chinese yuan renminbi)
Reporting by Qiaoyi Li, Zhang Yan and Ju-min Park; Editing by Andrew Heavens and Alexander Smith
Source: Reuters