After Losses And Production Reduction In China, BYD Seeks To Expand European Market, Surpasses Tesla And Plans Factories In Hungary And Turkey
Problems in paradise for BYD. The world’s largest manufacturer of electric cars saw its profits decline for the first time in three years. In the second quarter of 2025, the company reported a nearly 30% drop in its net earnings compared to the same period last year.
The situation contrasts with the first quarter, when the company had achieved growth of over 100%.
The price war in the Chinese market, coupled with reduced sales and other factors, eroded BYD’s margins.
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Therefore, its expansion into international markets has become more necessary than ever, with special attention to Europe.
From Prosperity To Billion-Dollar Loss
BYD’s net profit fell by 28.9% between April and June, reaching 6.4 billion yuan, equivalent to R$ 4.8 billion.
The number was well below analysts’ expectations, which predicted 10.7 billion yuan, or R$ 8.1 billion.
In addition, gross margins also declined, from 18.7% last year to 16.3% now. Another pressure point is the working capital deficit, which exceeded 122 million at the end of June.
This drop can be explained by several reasons. The Chinese government decided to intervene more harshly in the price war within the sector, imposing measures such as limiting discounts and requiring faster payments to suppliers. BYD, for example, reduced its payment term for obligations to 60 days.
Another factor is the decline in electric vehicle sales in China. BYD, which concentrates 80% of its production in the country, recorded three consecutive months of contraction until July.
This situation forced the company to reduce production for the first time in a year and a half, in light of rising inventories.
It canceled night shifts and left some factories operating at only one-third of capacity, as reported by Reuters at the end of June.
Frustrated Attempts And Impact On Dealerships
To stimulate demand, the company offered a 1 billion yuan incentive to dealerships. However, the spending did not yield the expected results.
In May, several stores even closed their doors due to weak sales, further reinforcing the automaker’s challenges.
Faced with difficulties in the Chinese market, the strategy of expanding internationally has gained momentum. In Europe, BYD has already achieved significant victories.
In April, it surpassed Tesla in electric vehicle sales, with 7,231 deliveries compared to 7,165 from the competitor. Furthermore, in 2024, it also surpassed Tesla in revenue, reaching over 100 billion dollars, even without selling in key markets like the United States.
The company is preparing to open factories in Hungary and Turkey, although production will not start until 2026.
Meanwhile, exports to Europe will be made from its plant in Thailand, allowing it to circumvent higher tariffs and improve margins.
Results on the continent are already substantial. Between January and July of this year, BYD delivered about 84,000 vehicles, a jump of over 250% from the 16,600 units in the same period last year.
Therefore, Europe is consolidating as a key player in the manufacturer’s future, which has already become the eighth largest in the global automotive sector in just a few years.
With information from Xataka.

Tem gente que não se dá conta que no período atual carros elétricos só zero e que ninguém irá comprar essas porqueiras com 6 anos de uso, todos serão descartáveis como plástico que gera milhares de toneladas de lixo no mundo todo.
Qualquer empresa estatal comunista que não tenha escravos obrigados a comprar seus produtos tem este destino
Retifica o título urgentemente. Redução nos lucros virou prejuízo? A BYD não teve perdas nem prejuízos no segundo trimestre. A guerra de preços no mercado chinês provocou redução nos lucros, o que já era previsível, mas a BYD continua lucrativa.
Realmente, faz o leitor a entender que a empresa perdeu dinheiro, que é diferente de ganhar menos!
Concordo, como a imprensa está mal intencionada e manipulando o público descaradamente!!
Mas olhe o nome desse site Click petróleo e gas kkkk é óbvio que eles vão denegrir os carros elétricos
Não restam dúvidas, a matéria é tendenciosa.