BYD faces sales decline amid export surge

BYD released its interim financial report for 2026 on 28 August, showing a decline in revenue and net profit in the first half of the year, while vehicle shipments to overseas markets surged sharply.

In the first half of 2026, BYD recorded operating revenue of approximately 344.815 billion yuan (around Rp908.8 billion), down 7.13 per cent compared with the same period last year.

Net profit attributable to shareholders fell to approximately 12.32 billion yuan (Rp32 billion), a drop of 20.54 per cent, as reported by Carnewschina on Saturday (29/8) local time.

BYD explained that the decline in net profit was mainly due to short-term pressure from exchange rate fluctuations and the resulting foreign exchange losses, and stressed that the profitability of its core business remained stable. In the second quarter alone, net profit rose 30 per cent year on year, while gross margin reached 18.9 per cent, the highest in the past year.

BYD Chairman and President Wang Chuanfu attributed the sales decline to supply chain constraints. He specifically cited insufficient production capacity for the second-generation Blade Battery because the production ramp-up process is still ongoing.

“This year’s sales depend on battery production,” Wang said.

A staff member from BYD’s fast-charging business confirmed that although production capacity has increased after six months of upgrades to the production line, supply remains limited.

Amid challenges in the domestic market, BYD’s strategy of global expansion and strengthening its position in the premium segment is beginning to show momentum.

Data from the China Association of Automobile Manufacturers (CAAM) show BYD exported 792,000 vehicles in the first half of 2026, surging 67.8 per cent year on year. Exports now account for nearly 44 per cent of the company’s total sales.

Wang Chuanfu expressed optimism that BYD can exceed its annual overseas sales target of 1.5 million units.

BYD’s position as China’s best-selling carmaker is now under threat. As previously reported, BYD’s global sales had fallen for eight consecutive months before the export surge reversed the downward trend.

However, this also indicates that BYD’s sales in the Chinese domestic market are not particularly strong.

In the first half of this year, BYD’s domestic sales in China reached approximately 1.016 million units, while Geely Auto’s domestic sales, including internal combustion engine vehicles, reached approximately 950,000 units. The sales gap between the two is now narrowing.

It would not be surprising if Geely Auto’s domestic sales in China surpass BYD this year.