BYD’s net profit jumped 30 per cent year on year to Rmb8.2bn ($1.2bn) in the April‑June quarter, marking its first profit increase in five quarters. Revenue slipped about 3 per cent to Rmb194.6bn, but overseas sales now account for more than half of total revenue for the first time, with exports surging 68 per cent to 792,000 vehicles in the first half of 2026. The Chinese EV giant has been pressured by fierce domestic competition from Geely, Xiaomi, Nio and Xpeng and the loss of government subsidies, while Beijing’s push for faster supplier payments challenges its low‑cost financing model.

In Europe and the UK, BYD’s sales nearly 2.5‑folded, reaching roughly 10 per cent of overall volume, helped by the launch of its premium Denza brand and higher fuel prices from the Middle East conflict. Analysts warn that BYD is losing domestic market share faster than rivals, squeezed by new tech‑focused entrants and traditional automakers partnering with Huawei and Momenta. Rising raw‑material costs and heavy R&D spending on ultrafast charging and new models also weigh on margins.