Chinese automaker BYD has reported record annual revenue of $116bn, surpassing Tesla, but its profit fell for the first time since 2021 under pressure from fierce competition in the electric vehicle market.
Revenue grew 3.5% to 804bn yuan ($116bn) in 2025, while annual profit dropped 19% to 32.6bn yuan ($4.7bn). BYD sold 2.26 million electric vehicles last year, up 28%, while Tesla delivered 1.64 million, a decline of 9%.
Domestic sales have fallen for six consecutive months, with total sales in January and February down 36% year-on-year to 400,241 units. A price war in China, the world's largest auto market, has hurt profitability, and government subsidies encouraging EV adoption have been scaled back this year.
Chairman Wang Chuan-fu acknowledged that competition in the new energy vehicle industry has reached a 'fever pitch' and is undergoing a brutal 'knockout stage'. Analyst Chris Liu of Omdia said BYD cannot rely on mass-market EVs to sustain sales volumes. However, higher oil and gasoline prices due to the Iran war are expected to boost interest in renewable energy and EVs.
BYD is banking on technology upgrades, launching a new 'blade' battery that can achieve nearly a full charge in nine minutes, and introducing models such as the Datang SUV. Overseas, it plans to sell around 1.3 million vehicles in 2026, up from 1.05 million last year, with expansion in markets including the UK, Brazil and Argentina. BYD shares in Hong Kong have fallen more than 20% over the past year but have risen in March.
