A BYD booth at some auto show. Credit: Ifeng Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member BYD released its interim report for 2026 on August 28, revealing a decline in both top-line revenue and net profit for the first half of the year, contrasted by a massive surge in overseas shipments. For the first half of 2026, the company recorded operating revenue of approximately 344.815 billion yuan (50.6 billion USD), a year-on-year decrease of 7.13%. Net profit attributable to shareholders of the listed company fell to approximately 12.32 billion yuan (1.8 billion USD), representing a 20.54% decline. BYD explained that the decline in net profit was primarily due to short-term pressure from exchange rate fluctuations and resulting foreign exchange losses, asserting that the profitability of its core business remains stable. Notably, the second quarter alone saw a 30% year-on-year increase in net profit, with the gross margin hitting a one-year high of 18.9%. The company’s revenue streams were split between its automotive and electronics divisions: Automotive and related products: Revenue reached approximately 275.34 billion yuan (40.4 billion USD), down 8.98% year-on-year, accounting for 79.85% of total revenue. While this figure is lower than the 302.506 billion yuan (44.5 billion USD) recorded in H1 2024, it marks a recovery compared to the 228.317 billion yuan (33.6 billion USD) reported in H1 2025. Electronics and other products: Revenue grew slightly by 0.96% to approximately 69.405 billion yuan (10.2 billion USD), making up 20.13% of the total. Sales and battery bottlenecksFrom January to June 2026, BYD’s cumulative NEV sales totalled approximately 1.8085 million units, a 15.72% year-on-year drop. BYD Chairman and President Wang Chuanfu attributed the sales shortfall to supply chain constraints, specifically stating that the current performance is primarily due to insufficient production capacity of the second-generation “Blade Battery,” which is still in the ramping-up phase. “This year’s sales depend on battery production,” Wang noted. A staff member from BYD’s flash-charging business confirmed that while production capacity has increased following six months of line upgrades, it remains tight. Export boom and high-end brands growthDespite the domestic headwinds, BYD’s strategy of globalisation and premiumization is gaining momentum. Data from the China Association of Automobile Manufacturers shows that BYD exported 792,000 vehicles in the first half of 2026, a staggering 67.8% increase year-on-year. Exports now account for nearly 44% of the company’s total sales. Wang Chuanfu expressed confidence that the company might exceed its annual overseas sales target of 1.5 million units. The company’s high-end brands – Denza, Fang Cheng Bao, and YangWang – also saw growth. Combined sales for these brands reached approximately 228,000 units, a 61% increase, now representing 12.6% of total sales. Editor’s comment BYD’s position as the top-selling Chinese carmaker is under threat. As we previously reported, its global sales had fallen for eight consecutive months before a surge in exports reversed the decline. However, this also suggests that its domestic sales in China aren’t particularly strong. In the first half of this year, its domestic sales in China were approximately 1.016 million units, while Geely Auto’s domestic sales (including internal combustion engine vehicles) reached about 950,000 units – closing the gap significantly. It wouldn’t be surprising if Geely Auto’s domestic sales in China overtake BYD’s this year. Most important news in your inbox. Recaps · scheduled All you need, in one email. Instant alerts · real-time Ping me when an article goes live. 0 of 27 topics selected Bundle into one email per day — instead of one email per article No spam · Unsubscribe with one click · Change settings anytime
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