BYD Outpaces Geely in Q2 Sales and Profits as Overseas Business Widens the Gap

In the first half of 2026, BYD sold 1.8085 million vehicles, a year-over-year decline of 15.72%, while Geely Auto sold 1.423 million units, up 1% year-on-year. The sales gap between the two companies stood at 385,600 units. In terms of net profit attributable to shareholders, BYD reported RMB 12.325 billion compared to Geely’s RMB 9.091 billion—a difference of approximately RMB 3.234 billion. This gap was primarily formed in the second quarter. BYD sold 1.108 million vehicles in Q2, 394,400 more than Geely, and recorded net profit attributable to shareholders of about RMB 8.241 billion—RMB 3.316 billion higher than Geely’s. Overseas markets were the decisive factor driving this divergence. In H1 2026, BYD’s overseas sales exceeded 790,000 units, surging roughly 70% year-on-year and accounting for 44% of its total sales. Geely exported 474,200 vehicles, up 158% year-on-year. The 317,800-unit gap in overseas sales accounted for 82.4% of their overall sales difference. BYD’s overseas revenue accounted for 52.57% of the group’s total revenue, surpassing domestic revenue for the first time. Its overseas revenue from automobiles and related products reached RMB 129.497 billion, up approximately 56% year-on-year. Meanwhile, BYD’s total revenue declined 7.13% year-on-year, gross profit fell 2.81% to RMB 64.989 billion, yet gross margin rose to 18.85%. The company attributed the margin improvement mainly to the expansion of its overseas new energy vehicle (NEV) business. As of June 30, 2026, BYD’s inventory carrying value stood at RMB 189.991 billion, an increase of over RMB 50 billion from RMB 138.421 billion at the end of 2025. Inventory turnover days rose to 109 in H1 2026, up from 79 days a year earlier. BYD explained that the rise in transit inventory was due to expanded overseas operations and longer ocean freight cycles. During the same period, Geely’s average revenue per vehicle increased from approximately RMB 97,000 to RMB 112,000, and its gross margin improved by 1.58 percentage points year-on-year to 17.9%. Its premium brand Zeekr sold 178,400 units in H1 2026, up 97% year-on-year. Of these, the combined sales of the Zeekr 9X, 8X, and 009 models exceeded 71,000 units, driving the share of vehicles priced above RMB 300,000 within the Zeekr brand to nearly 40%. Geely exported 277,200 NEVs in H1 2026, a staggering 585% year-on-year increase, representing 58.5% of its total exports. The company has raised its full-year export target from 640,000 to 920,000 units. The two automakers are pursuing divergent overseas expansion strategies: BYD is focusing on building its own factories, shipping fleets, and sales channels, while Geely is advancing localization primarily through partnerships—such as collaborating with Renault to enter the Brazilian market and planning to leverage Volvo’s European plants to produce premium vehicles, with production expected to begin in 2028.