Unexpected News from EV Giant BYD: Profits Fall for the First Time in Three Years

Following Tesla's recent quarterly sales struggles, concerning news has also emerged from another of the industry's shining stars and biggest competitors, BYD. The Chinese manufacturer, which has drawn attention with its growth and profitability, has reported a decline in its profits for the first time in over three years.

According to a Bloomberg report dated September 1, 2025, the escalating price wars for electric vehicles in the Chinese market caused BYD's profit to decrease by 30% in the last quarter. The company's success in overseas markets continues, with international sales showing a 50% increase. However, this success was not enough to salvage overall profitability, and the company's profit margin fell to 18%.

Other factors complicating the financial picture include rising R&D (Research and Development) costs, debt burden, and changing legal regulations. While these factors strain BYD's finances, they are also pushing the company to turn its course more aggressively towards global markets.

Chinese manufacturers, seeking profitability abroad due to an unsustainable price war in their domestic market, are slowly beginning to reach the end of their aggressive growth policies.