BYD's third-quarter profits jumped nearly 30 percent as exports helped offset sluggish sales in China. The Shenzhen-based group has been aggressively targeting overseas markets where its relatively low-cost, high-tech vehicles are shaking up markets long dominated by legacy carmakers. Global expansion has become increasingly urgent amid intense competition from local Chinese rivals, a pullback in state subsidies for EVs and a government crackdown on poor treatment of suppliers.
On Thursday, BYD reported net profit of Rmb10bn ($1.5bn) for the three months to September, up 28 percent from last year. Revenues rose 14 percent to Rmb221.5bn. Both figures fell well short of analysts' expectations.
For the first nine months of the year, revenues were flat year-on-year while earnings were slightly down, reflecting a moderate recovery after domestic Chinese sales cratered early in the year. BYD's results are illustrative of a broader pattern in the Chinese automotive industry. According to earlier filings, the group's total sales in the first nine months of the year fell 4 percent to 3.1 million vehicles while its exports nearly doubled to more than 1.3 million cars.
In Europe and the UK, BYD's sales more than doubled in the year to September to about 284,000 units with the Chinese group taking a 2.7 percent market share, according to European car industry body ACEA. China's total vehicle exports are 67 percent higher this year at 8.2 million units, already surpassing last year's record high. However, domestic Chinese sales are tracking more than 22 percent lower year-on-year, with petrol and diesel cars down by a third.
While EV sales in China have also slowed, they are now capturing about two-thirds of car sales in the world's largest automotive market. BYD remains the dominant company in China's EV market with a 22 percent share. Amid rising trade frictions, BYD is among a clutch of Chinese groups racing to build out a global manufacturing base.
The group is also in the throes of a major transition away from relying on the money owed to suppliers as a form of cheap funding to drive its rapid growth. Highlighting this change, the company on Thursday reported that net cash flows from financing activities swung from a Rmb101.7bn inflow to a Rmb23.1bn outflow. It also repaid Rmb109.9bn in debt in the first nine months, nearly triple the Rmb36.7bn for the same period in 2025.
BYD's balance of cash and cash equivalents dropped by two-thirds to Rmb29.8bn while its bills payable more than tripled to Rmb78.9bn.
Source: Financial Times Companies · Summarized by HeadlinesBriefing