Q1 2026 Domestic Auto Sales Drop Over 20% YoY; BYD Posts Revenue Growth in 2025 but Lower Net Profit

In the first quarter of 2026, domestic auto sales declined by more than 20% year-over-year. In 2025, BYD reported revenue of RMB 803.965 billion, an increase of 3.46% year-over-year, and net profit attributable to shareholders of RMB 32.619 billion, down 18.97% year-over-year. In the preceding three years, BYD’s net profit attributable to shareholders had grown by 445.86%, 80.72%, and 34.00%, respectively. Annual reports from multiple listed automakers for 2025 indicate that the industry broadly faced a situation of rising sales volumes without corresponding revenue growth, and increasing revenues without proportional profit gains. Rising raw material costs and intensifying market competition were the primary factors driving the profit decline.