- BYD’s annual profit fell 19 per cent to £3.6 billion.
- Workforce cut by over 10 per cent as growth slows.
- Rising competition and subsidy changes hit sales momentum.
BYD, China’s largest electric carmaker, has reported its first annual profit decline in four years, signalling a shift in momentum for the country’s fast-growing electric vehicle market.
The company said net profit fell 19 per cent to 32.6 billion yuan, roughly £3.6 billion, missing analyst expectations. Revenue still grew, but only by 3.5 per cent — its slowest pace in six years — pointing to softer demand, especially in its home market.
The slowdown has also fed into job cuts. BYD reduced its workforce by 10.2 per cent, bringing total headcount down to 869,622 in 2025. Chairman and chief executive Wang Chuanfu reportedly described the market as entering a “brutal knockout stage”, as quoted in a news report.
Recent sales trends suggest the pressure is ongoing. While BYD was China’s top-selling carmaker last year, it slipped to fourth place in the January to February period after a sharp drop in sales — the biggest since the Covid-19 pandemic.
Competition tightens grip
BYD’s rapid rise was built on affordable electric models, particularly its Dynasty and Ocean series. But rivals such as Leapmotor and Geely have been closing the gap, both on price and technology.
Quarterly figures underline the shift. For the three months ending December, profit fell 38.2 per cent to 9.3 billion yuan, about £1 billion, marking a third consecutive quarterly decline. Analysts suggest this raises questions about how predictable BYD’s earnings will be going forward.
The broader environment is also playing a role. China’s reduction in electric vehicle subsidies has hit demand, particularly in BYD’s core budget segment. Cars priced below 150,000 yuan, roughly £16,300, account for more than 61 per cent of its domestic sales, making it more exposed to policy changes.
To counter slowing sales, BYD has introduced 11 new models featuring faster-charging batteries and is expanding its charging network. However, analysts remain cautious, suggesting that a shift towards higher-priced models may not fully align with what many buyers are currently looking for.
There are still areas of growth, particularly overseas, but the company may face a tougher year ahead as competition intensifies and demand at home remains uncertain.