BYD Shares Slide as China’s EV Price War Hits Profits

Shares in Chinese electric vehicle maker BYD fell as much as 8% on this week after the company reported a sharp drop in profit amid an intensifying price war in China’s auto sector, Osmond Chia reported for BBC News on September 1, 2025.

The carmaker said recently that net profit fell to 6.4 billion yuan ($900 million; £660 million) between April and June. (Photo: BYD Global Facebook)

The carmaker said recently that net profit fell to 6.4 billion yuan ($900 million; £660 million) between April and June, down 30% from a year earlier. BYD said “increased price competition” among Chinese EV brands had squeezed margins.

The Shenzhen-based firm faces a crowded market, competing with local rivals Nio and XPeng as well as US carmaker Tesla, all of which have slashed prices to lure buyers.

BYD’s shares opened lower in Hong Kong at one point but recovered slightly later on.

Competition has reached “fever pitch,” the company said, citing “industry malpractices” such as excessive marketing that have disrupted the market.

Many EV makers have subsidized dealers and offered zero-interest loans to customers, prompting Beijing to warn automakers against aggressive discounting to protect the economy.