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Home » BYD stock falls as fierce competition from China weighs on first-half earnings
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BYD stock falls as fierce competition from China weighs on first-half earnings

Editor-In-ChiefBy Editor-In-ChiefAugust 30, 2026No Comments2 Mins Read
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HONG KONG, CHINA – JANUARY 5: Panoramic view of BYD auto showroom in Hong Kong, China on January 5, 2026. (Photo provided by Tamotsu Tsujizawa/Getty Images)

Sawayasu Tsuji | Getty Images News | Getty Images

Share prices of major Chinese electric vehicles BYD Stocks fell nearly 5% in Hong Kong on Monday after Friday’s interim results were announced.

BYD’s second-quarter net profit rose 30% year-on-year to 8.2 billion yuan ($1.2 billion), while sales fell 3% year-on-year to 194.6 billion yuan, Citi said after the automaker announced its results.

According to the company, BYD’s sales in the first half of the year decreased by 7.1% year on year to 344.8 billion yuan, and net profit attributable to shareholders decreased by 20.5% to 12.3 billion yuan.

BYD said China’s auto industry faced “sluggish domestic demand and solid export growth” in the first half of the year, while fierce competition and rising costs of goods, raw materials and chips squeezed automakers’ profit margins.

Meanwhile, BYD’s exports in the first half of the year totaled 792,000 units, an increase of 67.8% from the same period last year. In China, despite increased competition and temporary challenges to domestic demand, combined sales of brands such as FANGCHENGBAO, Denza and Yangwang brands increased by 61% year-on-year and accounted for 12.8% of the group’s passenger car sales.

Citi expects BYD’s third-quarter core profit to reach 13.5 billion yuan, and full-year net profit could be 41.2 billion yuan, 8% above consensus.

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