BYD Reports Dual Decline in Revenue and Net Profit for Q1 2026 Amid EV Market Slowdown

[Financial Snapshot] In the first quarter of 2026, BYD reported revenue of RMB 150.2 billion and net profit of RMB 4.085 billion, representing year-over-year declines of 11.82% and 55.38%, respectively.

Core Developments: Sales and Profits Under Simultaneous Pressure

Total vehicle sales for the quarter reached 700,463 units, down 30.01% year-over-year. Specifically, all-electric vehicle sales totaled 310,389 units, while plug-in hybrid models sold 378,604 units—both segments posted double-digit percentage declines.

Key Metrics: Cost Control Fails to Offset Revenue Contraction

Although gross margin improved sequentially to 18.8% and R&D expenses remained high at RMB 11.3 billion, total operating costs decreased by only 9.0%, which was less than the revenue decline. Financial expenses swung from a gain of RMB -19.08 billion in the same period last year to an expense of RMB 21.00 billion this quarter, primarily due to foreign exchange losses.

Industry Impact: Sharp Cash Flow Contraction

Net cash flow from operating activities amounted to just RMB 2.79 billion, a sharp year-over-year drop of 67.48%, reflecting mounting pressure on customer payments and signaling that the market has entered a phase of deep adjustment.