BYD Notches Record Exports and Overtakes VW in Brazil as Domestic Profit Slumps 55%

Chinese EV giant BYD delivers record overseas sales, overtakes Volkswagen in Brazil, but domestic price war cuts net profit by 55% as stock nears 52-week low.

BYD has posted a stunning split-screen performance. The Chinese electric-vehicle giant delivered over 135,000 vehicles abroad in April alone — a jump of more than 70% from a year earlier — and for the first time overtook Volkswagen in Brazilian new-car registrations. Yet back home, the brutal price war is tearing through its bottom line. First-quarter net profit tumbled 55% to 4.09 billion yuan, while revenue also shrank as domestic sales slid for the eighth consecutive month.

The contrasting pictures help explain why the stock is hovering near its 52-week low in Hong Kong. Shares closed Friday at HK$96.45, down 1.7% on the session and roughly 6% lower over the past ten trading days. From a technical standpoint, the equity is now testing a critical support zone near HK$95.05, with analysts warning that a break below that level could open the door to further declines.

Exports have become the company’s lifeline. International markets now account for nearly 43% of total monthly sales. In Europe, first-quarter registrations surged 155%, and BYD set a German record in April with over 4,700 vehicles. The Brazilian milestone — topping Volkswagen in monthly registrations — marks a historic first for a Chinese automaker in that market.

The profit collapse stems largely from a relentless discounting strategy at home. BYD slashed prices on numerous models last year to defend market share, driving its gross margin from 19.4% down to 17.7%. Rising supply-chain costs and fading government subsidies have compounded the margin squeeze. Management has responded by raising the price of optional smart-driving upgrades by more than 20% and rolling out new models equipped with improved battery technology. The push into the premium segment continues through the Denza brand, while new fast-charging systems aim to lure customers away from legacy combustion-engine makers.

Overseas, the company is scrambling to insulate itself from trade barriers. European Union tariffs of up to 27% have accelerated plans for local production. BYD is currently in talks to acquire existing manufacturing plants, with Stellantis facilities in Italy reportedly among the candidates.

Despite the recent share-price weakness, analysts remain broadly bullish. The average price target among 25 experts stands at HK$124, and Citigroup has reiterated its buy recommendation, citing the structural growth in electric-vehicle adoption. For the stock to regain momentum, however, the international volumes will need to grow fast enough to compensate for the shrinking profits in China. The second half of 2026 will show whether BYD’s export engine can outrun the damage of the home-market price war.