Car Manufacturer Overseas Revenue Surpasses Domestic Market for the First Time
Chinese EV giant BYD reported a 30% increase in second-quarter net profit, reaching 8.2 billion yuan ($1.2 billion). Expanding presence in international markets and demand for higher-end vehicles were key drivers of the financial turnaround. This was reported by Delo.ua citing Bloomberg, according to the portal PromPolitInform.
This quarterly profit increase marks the company’s first growth after a year and a half of declines. Meanwhile, total revenue dropped slightly by 3% to 194.6 billion yuan.
In the first half of the year, BYD’s overseas sales reached 181.3 billion yuan, growing by 34%. International business accounted for 53% of total revenue, surpassing the Chinese domestic market for the first time.
Domestic Market Slump and Price Wars
Strong export results helped offset a difficult domestic market, where aggressive price cuts continue and total July industry sales fell by 21%. Additionally, Chinese regulators have tightened safety inspection controls for new vehicle models.
During the first six months of the year, BYD sold 1.81 million vehicles. This currently trails the company’s full-year target of 5 to 5.5 million units.
Nevertheless, analysts expect profit growth to accelerate in the second half of the year, driven by further global expansion into Europe, South America, and Japan.
Logistics Challenges and European Investigations
Global expansion has come with logistics hurdles: long shipping times increased BYD vehicle inventory levels from 79 to 109 days. Potential new European Union tariffs on Chinese hybrid models present an additional risk.
In Hungary, local manufacturing launch has been delayed to the fourth quarter due to ongoing investigations into government subsidies and subcontractor audits.
BYD maintains its ambition to become the world’s largest automaker within five years. The company considers export growth, battery technology upgrades, and fast-charging capabilities to be the primary drivers for achieving this goal.
Photo: Delo.ua
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