BYD reported a 55% drop in first-quarter net profit to Rmb4.1bn ($600mn), as Chinese EV sales slowed despite improved global demand. The Shenzhen-based manufacturer's revenue fell 11.8% to Rmb150.2bn, reflecting the impact of government subsidy phaseouts on its domestic market.

The company faces intense competition from Chinese rivals including Geely, Leapmotor, and Xiaomi, as well as vehicles with Huawei technology. BYD is countering by expanding internationally, with European sales more than doubling to nearly 74,000 vehicles, and launching its premium Denza brand to compete against Porsche and BMW.

BYD maintains a 20% share of China's new energy vehicle market despite the slowdown. Analysts project the company will sell over 5 million cars this year, with improving export mix. The company is exploring motorsports opportunities, including Formula 1, to showcase technology amid growing international competition.