BYD "runs out of steam" after 3 years, Q2/2025 profit plunges nearly 30%

Video : Review of BYD Seal electric car in Vietnam.

BYD posted its first quarterly profit decline in more than three and a half years, as expansion faltered amid a Chinese government call for companies to end a protracted price war.

In the second quarter of 2025, BYD's net profit reached 6.4 billion yuan (equivalent to 894.74 million USD), down 29.9% year-on-year, after a sharp increase of 100.4% in the first quarter.

BYD "ran out of breath" after 3 years, profit in the second quarter of 2025 plummeted nearly 30%.

Revenue for the three months ended June 30 still rose 14% to 200.9 billion yuan, helping first-half profit rise 13.8% on a 23.3% increase in revenue.

But these growth figures cannot mask the fact that BYD is under significant pressure. Chinese authorities’ calls to end price cuts are directly impacting profits, significantly narrowing profit margins across the entire EV industry.

BYD set a target of selling 5.5 million vehicles globally in 2025, but after seven months, it only achieved sales of 2.49 million vehicles, equivalent to 45% of the plan.

Nomura's August 12 report said BYD's full-year sales are likely to range from 5 to 5.2 million vehicles.

Third Bridge analyst Rosalie Chen said the chances of achieving this “ambitious” target are bleak. Meanwhile, Nomura’s August 12 report said BYD’s full-year sales are likely to range from 5 to 5.2 million vehicles.

In fact, the Chinese electric carmaker’s performance is showing signs of slowing down. Domestic sales fell for three straight months through July, while production also fell for the first time in 17 months.

In response, BYD has slowed production and suspended capacity expansion at some factories in China, according to Reuters.

Pressure from the government also forced BYD to adjust its business operations.

Government pressure has also forced BYD to adjust its business practices. In June, the company and several major Chinese automakers agreed to shorten their payment terms to 60 days after the government ordered companies to pay faster and end a price war. The move has analysts focusing more on BYD’s working capital management.

Working capital - a measure of the difference between current assets and current liabilities - is an important indicator of the ability to cover day-to-day operating costs.

By June 30, BYD's working capital deficit had widened to 122.7 billion yuan, compared with 95.8 billion yuan at the end of the first quarter and close to the 125.4 billion yuan recorded at the end of 2024.

At the same time, the debt-to-asset ratio also increased slightly, from 70.7% at the end of the first quarter to 71.1% at the end of June. The figures show that BYD's financial burden is increasing in the context of having to meet the government's quick payment requirements and facing fierce competition in the market.

This situation is not only a problem for BYD but also reflects the general picture of the Chinese electric vehicle industry. The prolonged price reduction race has caused difficulties for even the market leaders, showing the urgent need for sustainable solutions for the entire industry.

Source: https://khoahocdoisong.vn/byd-hut-hoi-sau-3-nam-loi-nhuan-quy-ii2025-lao-doc-gan-30-post2149050057.html