BYD posted its weakest quarterly profit growth since 2022, with revenue growth slowing to the lowest level in nearly four years, hit by slowing EV demand and a bruising price war in the world’s largest auto market. First-quarter net profit was up 10.6% YoY at 4.57 billion RMB ($631.08 million), while revenue grew by 4% to 124.94 billion RMB ($19.22 billion), BYD said in a stock market filing.
Despite selling over 300,000 battery-only cars, down from a record high, the Chinese EV giant faced challenges from a price war and slower EV demand in China, the world's largest car market.
However, compared to Tesla, BYD’s performance appeared relatively stronger, as Tesla reported its first quarterly revenue decline since 2020. To counter the slowdown, BYD has cut prices on its latest models and aims to expand into new markets, despite facing resistance in the US and Europe.
Earlier in April, BYD revealed the U7, its third ultra-luxury vehicle under the Yangwang brand, as it makes a drive upmarket to enhance profitability amid the growing price battle.
BYD introduced the Yangwang brand to its lineup last year, offering a sports vehicle and SUV for more than one million RMB ($138,009).
The supercar features a “dance mode,” allowing the vehicle to jump a few millimeters off the ground and even travel on three wheels, in sync with a user’s favorite tunes, due to BYD's DiSus suspension system.