Despite robust overseas sales, BYD’s net income of 6.36 billion yuan for the three months though June 30 fell short of analysts’ estimates for a modest increase. Heavy discounting saw BYD’s gross margin contract to 18% from 18.8% in the first half of 2024, although that figure is still among the top in the industry, exceeding rivals such as Zhejiang Geely Holding Group Co and Chery Automobile Co.
The fallout is becoming impossible to ignore in the fierce battle among Chinese carmakers.
With BYD Co reporting a staggering 30% plunge in quarterly profit last Friday, its first decline in over three years, it’s become clear that not even dominant players are safe in the cutthroat battle for market share. Shares dropped as much as 8% in Hong Kong on Monday morning.
