BYD Increases Net Profit by 30%, Export Accounts for Over Half of Revenue for the First Time

Chinese electric vehicle manufacturer BYD increased its net profit by 30% to 8.2 billion yuan in the second quarter. This growth, the first in a year and a half, was driven by overseas sales and demand for more expensive models, offsetting a decline in China. Revenue fell by 3% to 194.6 billion yuan. For the first half of the year, overseas sales rose by 34% to 181.3 billion yuan, accounting for 53% of total revenue and surpassing the domestic market for the first time. In China, price reductions and declining sales continue, with a 21% drop across the industry in July. Over six months, BYD sold 1.81 million vehicles, falling short of its annual target of 5-5.5 million units. Analysts predict accelerated revenue growth in the second half of the year due to global expansion into Europe, South America, and Japan. The increase in exports is accompanied by logistical challenges, with BYD's vehicle inventory rising from 79 to 109 days. In Hungary, the company's market entry is delayed due to a subsidy investigation and subcontractor checks, with the factory launch postponed to the fourth quarter.