BYD Stock: Automaker Raises Export Goal to 1.5M Units Amid Domestic Slump

Key Takeaways

• BYD experienced a 19% decline in net profit during 2025, reaching CNY 32.6 billion — marking its first earnings contraction in four years.
• Worldwide revenue climbed 3.5% to an all-time high of CNY 804 billion, though China sales decreased by nearly 8%.
• According to private analyst communications, BYD anticipates 2026 export volumes of 1.5 million units, representing a 15% increase over publicly stated goals.
• Citigroup projects BYD’s Chinese automotive operations will operate at a loss during Q1 2026, making international sales critical for profitability.
• China deliveries collapsed 58% during January and February 2026, while international shipments jumped more than 50%.

BYD achieved unprecedented revenue levels in 2025, yet the results revealed significant underlying challenges. Net income declined 19% to CNY 32.6 billion (approximately $4.7 billion), ending a four-year period of consecutive profit growth.

BYD Company Limited, BYDDY

Worldwide revenue reached CNY 804 billion, representing a 3.5% year-over-year increase. However, this top-line figure concealed a more troubling trend: the company’s performance in its domestic Chinese market is deteriorating rapidly.

Vehicle deliveries within China dropped nearly 8% throughout 2025 to approximately 3.56 million units. The latter half of the year proved particularly challenging, as competing Chinese electric vehicle manufacturers intensified their market efforts and consumer appetite weakened.

Conditions deteriorated further entering 2026. During the first two months of the year, BYD’s China-based deliveries crashed 58% to merely 199,159 units. This steep decline followed Beijing’s decision to reduce new energy vehicle incentives at year-end.

Citigroup analysts have warned that BYD’s Chinese automotive division may post losses in the first quarter of 2026. Such a scenario would make international operations the sole profitable segment of its primary vehicle business — representing a dramatic transformation for the planet’s largest EV manufacturer.

International Markets Become Critical Lifeline

International sales have emerged as the company’s primary growth driver. BYD delivered more than one million vehicles in markets outside China during 2025, a remarkable 151% increase from the previous year. During January and February 2026, overseas shipments climbed over 50% to 201,082 units, even as the domestic market experienced a severe contraction.

During a Monday analyst conference call following the earnings announcement, BYD executives privately indicated the company projects export volumes will reach 1.5 million vehicles this year. This figure exceeds by 15% the 1.3 million unit target the automaker publicly announced in January.

The revised projection has not received official confirmation. BYD’s spokesperson did not provide a response when contacted for comment.

To achieve these ambitious figures, BYD has been establishing production facilities in Brazil, Hungary, and throughout Southeast Asia — partially as a strategy to circumvent tariffs and trade restrictions that would otherwise inflate vehicle prices in those regions.

Battery Technology Provides Additional Growth Avenue

Beyond automotive manufacturing, BYD is positioning its battery division as a sustained revenue generator.

The manufacturer has introduced an advanced rapid-charging technology capable of powering a battery from 10% to 70% capacity in just five minutes, with near-complete charging achieved in approximately nine minutes. BYD intends to deploy ultra-rapid charging infrastructure in international markets beginning in 2027.

Next-generation blade battery technology continues to be a central product category the company is advancing for both internal vehicle applications and external customers.

BYD also surpassed Tesla in worldwide EV deliveries during 2025, achieving this benchmark simultaneously with its profit contraction — illustrating the intensely competitive and margin-compressed nature of today’s electric vehicle industry.

BYD’s aggregate global deliveries totaled 4.6 million vehicles in 2025, representing a 7.7% year-over-year gain.

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