BYD’s profits are shrinking even as the Chinese automaker faces mounting challenges. The company’s third-quarter net income dropped 32.6 percent compared to the same period last year. When excluding one-time gains and losses, the decline was even steeper at 36.65 percent. The electronics division reported Q3 net profit of 14 billion yuan, down 9 percent year-on-year.
Despite potential sales strength, BYD couldn’t maintain its previous profit levels. Car sales declined in the latest quarter, contributing directly to the company’s margin contraction. The automaker’s pricing power has weakened as competition intensifies in China’s electric vehicle market. Price wars across the industry are squeezing profits for all manufacturers. Trading volume reached 835 million HKD during the period, reflecting significant market activity around the stock decline. However, BYD’s substantial R&D investment growth of 31.30% demonstrates the company’s commitment to innovation despite near-term profitability challenges. Q3 NEV sales totaled 1,114,192 units, marking the first year-on-year decline since Q1 2021.
BYD’s electronics segment generated 123.285 billion yuan in revenue during the first three quarters of 2025. This represented just a 0.95 percent increase year-on-year, showing minimal growth. Parent company owners’ profit for the electronics segment reached 31.37 billion yuan, up only 2.4 percent.
The segment’s Q3 performance reached just 27 to 29 percent of annual forecasts, signaling weakness. Bank of America Securities reduced its profit forecasts for BYD’s electronics segment by 4 to 8 percent through 2027. The bank’s analysts expressed concerns about the company’s growth sustainability and shrinking margins.
BYD’s Q3 net profit achieved only 29 percent of Bank of America’s full-year forecast for the electronics division. Performance levels fell below 32 to 38 percent of what the company achieved in the same quarters of previous years.
Looking ahead, BYD faces significant headwinds. Bank of America described the electronics segment’s prospects as “dull.” The company’s overall growth path is slowing across multiple business segments. Market expectations require adjustment based on recent performance trends.
Recovery in profit margins will depend on market conditions and how well BYD can execute its strategic plans. The competitive environment and pricing landscape in the EV industry will heavily influence the company’s long-term outlook. BYD’s challenges reflect broader struggles facing China’s automakers during a period of intense market competition and shifting consumer demand.