BYD’s Two-Speed April: Export Records Mask a Brutal Eighth Month of Domestic Decline

BYD's overseas sales surged 71% to a record in April, but domestic deliveries fell for the eighth straight month, squeezing margins and triggering a 55% profit drop.

The numbers coming out of BYD tell two sharply different stories. On one side, overseas vehicle sales hit an all-time high of 134,542 units in April, a surge of nearly 71 percent year-on-year. On the other, the Chinese auto giant just recorded its eighth consecutive month of declining domestic sales—a losing streak that now surpasses even the post-subsidy slump of 2019.

That 15.5 percent drop in home-market deliveries dragged total April sales of new-energy vehicles to 321,123, barely a whisker above March’s figure. The prolonged weakness at home has become the defining challenge for a company that once seemed untouchable in its domestic stronghold.

Profitability Takes a Hammering

The domestic price war, fueled by aggressive rivals such as Xiaomi and Geely, has exacted a heavy toll on BYD’s bottom line. First-quarter net profit collapsed 55 percent to 4.08 billion yuan, while total revenue slid 12 percent. Margins per vehicle have been squeezed to the bone as the company slashed prices to defend market share—cuts that peaked in March.

The financial strain is visible across the balance sheet. Short-term liabilities ballooned 72 percent in a single quarter, reaching 66.3 billion yuan by the end of March. That debt pile reflects the cost of funding an aggressive global push even as the core business bleeds cash.

Export Engine Roars to Life

Management is betting everything on international expansion to offset the domestic malaise. April’s export record—134,542 passenger cars and pick-ups—was driven in part by rising gasoline prices linked to the Iran conflict, which has revived global appetite for electric vehicles. Overseas sales already accounted for nearly half of total revenue in the first quarter.

The company has now raised its 2026 export target to 1.5 million vehicles, up from a previous forecast of 1.3 million. Analysts project annual revenue growth of 12 percent through 2028, a forecast that hinges almost entirely on BYD’s ability to gain traction in Europe and Latin America, along with new AI features for mid-range models.

Luxury Ambitions and a $2.76 Million Statement

On the Beijing Auto Show floor, BYD tried to project an image of technological prowess and premium ambition. Chairman Wang Chuanfu personally handed over the first Yangwang U9 Xtreme, a limited-edition supercar priced at roughly 2.76 million US dollars. Only 30 units will be built, making it the most expensive production vehicle in the company’s history.

There were bright spots in the volume segment too. The new Great Tang SUV, equipped with BYD’s blade battery promising nearly 1,000 kilometers of range, racked up over 30,000 pre-orders in a single day at the show. Meanwhile, the off-road Fang Cheng Bao brand saw sales triple, offering a rare glimmer of hope for the group’s mainstream lineup.

A Delicate Balancing Act

To shore up margins, BYD has raised prices on its advanced driver-assistance system by more than 20 percent—a counterintuitive move in a market where competitors are slashing prices. The strategy reflects a broader shift in focus from domestic volume to international profitability.

The stock market remains unconvinced. Shares closed at $13.40 in after-hours US trading following the quarterly release, reflecting investor anxiety about the domestic trajectory. If BYD hits its export target of 1.5 million vehicles with new models featuring ultra-fast charging technology, the home-market weakness becomes a manageable headache. If the international push stalls, the margin pressure from China will hit the income statement with full force.