BYD Profits Plunge 55% as EV Price War Intensifies

BYD Co. has seen its quarterly net income plummet to 4.08 billion yuan ($597 million), marking a 55% decline compared to the previous year. The Shenzhen-based automaker is currently embroiled in a fierce price war within the electric vehicle sector, forcing the company to implement deep discounts to fend off competitors. Revenue for the quarter ended March 31 fell 12% to 150.2 billion yuan. Despite the steep drop in profitability, the net income figure aligned closely with analyst expectations, which had averaged 4.1 billion yuan for the period. These results highlight the growing sustainability challenges facing the global EV industry, where volume growth is increasingly achieved through margin compression. The decline to a three-year profit low suggests that even market leaders are struggling to maintain pricing power amidst a saturated competitive landscape. Investors are now closely monitoring whether BYD can stabilize its earnings without sacrificing its dominant market position or if further price cuts will be necessary to sustain sales momentum.