BYD Profits Plunge Amid Cooling Domestic Demand

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BEIJING: Chinese EV giant BYD reported a sharp 55% drop in first-quarter net profit, earning 4.08 billion yuan ($598 million). Despite overtaking Tesla in total sales last year, the company is struggling with "cutthroat competition" and slowing demand within China. Quarterly revenue also declined by 11.8% to 150.2 billion yuan.

Profitability has been further squeezed by the phasing out of government consumer subsidies for new-energy vehicles. To offset these domestic challenges, BYD is aggressively targeting foreign markets in Europe, Southeast Asia, and the Middle East.

Analysts believe rising global oil prices, fueled by conflict in the Middle East, are currently boosting international interest in EVs as consumers seek more stable energy costs.

Photo Credits: AFP