BYD Co. reported a significant turnaround in its financial performance, with profit rising for the first time in five quarters. This positive shift comes despite a prolonged earnings slump that saw its first-quarter net profit drop by 55% to 4.08 billion yuan ($561 million) and second-quarter net income fall 30% to 6.36 billion yuan ($892 million). The recovery is largely attributed to a robust increase in overseas sales, which reached a record 179,841 units in July, accounting for 42.9% of the company's total sales for the month.
This surge in exports has helped offset a decline in domestic sales, which were down approximately 9% year-over-year in July, though this was the shallowest contraction since the domestic slump began. The company's total sales for July reached 419,211 vehicles, marking its strongest month of 2026 and a 21.8% year-over-year growth. Cumulative overseas sales through July stood at 972,097 units, putting BYD well on track to exceed its revised 2026 export target of 1.5 million vehicles.
BYD had previously revised its 2026 export target from 1.3 million to 1.5 million vehicles, and current trends suggest it could reach around 1.87 million by year-end if July's export rate continues. However, the company faces challenges in its overall sales targets, as its previous guidance of 5.0 million to 5.5 million new energy vehicles for 2026 appears increasingly difficult to achieve, with 2,227,722 units sold through seven months requiring an average of 554,456 vehicles per month for the remainder of the year. The price war in the Chinese market continues to impact profitability, although export momentum is providing a crucial growth driver.
