BYD's annual profits fell 20% to Rmb32.6bn ($4.72bn), marking the first decline in four years as China's brutal EV price war intensifies. Chairman Wang Chuanfu described market competition as reaching 'fever pitch' in a 'knockout stage,' highlighting the savage price war battering the world's largest EV maker. The Shenzhen-based company's fourth-quarter profits dropped 38% to Rmb9.53bn, dragging down full-year results below analysts' expectations.

Sales of 4.6 million vehicles last year were more than 10 times higher than in 2020, but BYD's market share in China has collapsed from 27% to 17% year-over-year. Local rivals including Geely, Huawei, SAIC, and Xiaomi have made significant inroads as government subsidies ended. Annual revenue of Rmb804bn fell short of forecasts, growing just 3.5% from 2024, though exports surged 40% to offset domestic weakness.

BYD's stock has risen 17.5% since the Iran conflict began, fueled by investor optimism about clean energy demand, though shares remain 22% below their May 2025 peak. The company's mainland-listed shares have been volatile as it navigates this challenging period. With six consecutive months of declining EV sales, BYD faces mounting pressure to boost exports and expand its global manufacturing footprint, including new factories in Brazil, Hungary, Indonesia, Thailand, Turkey, and Uzbekistan.