BYD posts first profit gain in five quarters as exports surge

BYD reported its first quarterly profit increase in five quarters on Friday, with second-quarter net income climbing 30% year-over-year to 8.2 billion yuan ($1.2 billion) as surging overseas sales helped the world's largest electric-vehicle maker weather a prolonged domestic downturn.bloomberg+1

The result beat the 8 billion yuan average of analyst estimates compiled by Bloomberg, while revenue dipped about 3% to 194.6 billion yuan. The figures were derived from first-half earnings filed with the Hong Kong stock exchange.scmp+1

Exports Drive the Turnaround

International sales did the heavy lifting. BYD sold 471,091 vehicles outside mainland China in the second quarter, up 82.5% year-over-year. Overseas shipments accounted for roughly 44% of total sales in the first half of 2026, up sharply from a year earlier.electrek+1

The export push is also lifting margins. According to Nick Lai, head of auto research for Asia-Pacific at JPMorgan, Chinese automakers earn an average net profit margin of about 5,000 yuan per vehicle domestically, compared with roughly 20,000 yuan per vehicle abroad. Sales of BYD's premium brands — Denza, Fang Cheng Bao, and Yangwang — climbed 61% and now represent 12.8% of passenger-vehicle sales.scmp+1

"BYD's quarterly profit would boost the Chinese auto industry's confidence despite weak sales at home," said Ivan Li, a researcher at Loyal Wealth Management in Shanghai. "They could increase sales abroad, banking on their technological and production strength."scmp

First Half Still Under Pressure

Despite the Q2 rebound, the first half of 2026 marked BYD's first interim earnings drop in six years. Net profit for the six months fell 20.5% to 12.3 billion yuan, and revenue declined 7.1% to 344.8 billion yuan. Domestic NEV deliveries dropped 15.7% in the period amid a brutal price war that Beijing has begun pressuring automakers to end.electrek+1

BYD delivered 557,090 fully electric vehicles in Q2, reclaiming its position as the world's largest BEV seller ahead of Tesla ↗ 4.23%, which delivered 480,126 vehicles in the same period. The company has told analysts it is targeting 1.5 million vehicle exports for all of 2026.azernews+1

Momentum appears to be building: July sales rose 21.8% year-over-year to 419,211 units, with overseas passenger-vehicle and pickup sales hitting a record 179,841 units, up 124%.electrek