On April 28, one of the world’s leading electric vehicle manufacturers — BYD — announced its financial results for the first quarter. According to the company’s report, net profit amounted to 4.1 billion yuan (approximately $600 million). This figure decreased by 55.4 percent compared to the same period last year and became the lowest since the second quarter of 2022.
In addition, the company’s total revenue reached 150.2 billion yuan ($22 billion), which also indicates a decline of 11.8 percent year-on-year. Such dynamics have attracted the attention of market participants and analysts.
According to experts, the main reason for such weak performance is the decline in demand for electric and hybrid vehicles in China’s domestic market. In particular, according to The Wall Street Journal, citing data from the China Passenger Car Association, sales of electric and hybrid vehicles in January fell by 20 percent to 596,000 units. This marked the first decline in sales since February 2024.
Analysts note that this situation is also related to the expiration of government subsidies for the purchase of electric and hybrid vehicles. In addition, the gradual cancellation of tax incentives for new energy vehicles from the beginning of 2026 has forced consumers to adopt a wait-and-see approach.
Another important factor is the reduction of government support for the production of hybrid batteries with a short driving range (less than 100 km). This has particularly affected manufacturers like BYD, which heavily rely on this segment.
Moreover, ongoing macroeconomic pressures in China are further complicating the situation. Slowing economic growth, weaker income growth, and rising unemployment have negatively impacted overall consumer purchasing power.
Overall, BYD’s results reflect not only the company’s internal challenges but also broader changes and pressures in the electric vehicle market. Whether demand will recover in the coming quarters or continue to decline remains an open question.
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