• BYD's third-quarter profit fell 32.6% to 7.8 billion yuan, marking its largest drop in over four years.
• Revenue also declined 3.1% year-on-year to 195 billion yuan, its first revenue drop in five years.
• Increasing competition from domestic rivals Geely and Leapmotor has pressured BYD's market share.
• BYD plans to enhance its overseas presence, particularly in Europe and Japan, despite domestic challenges.

Chinese electric vehicle maker BYD reported a 32.6 percent decline in its third-quarter profit, marking the largest fall in over four years. The net profit totaled 7.8 billion yuan (approximately US$1.1 billion), a significant drop from 11.6 billion yuan a year earlier. Revenue also decreased by 3.1 percent to 195 billion yuan, the first decline in over five years, demonstrating the pressures from domestic competition amid slowing sales

This consecutive quarterly downturn is primarily attributed to rising competition from other local automakers like Geely and Leapmotor, which have started to capture BYD's market share in the budget car segment. BYD's domestic market share reportedly decreased to 14 percent in September from 18 percent the previous year, indicating a challenging competitive landscape.

In response to these challenges, BYD announced a reduction in its sales target for 2025 by 16 percent to 4.6 million vehicles. Despite this, the company remains optimistic about its export potential, aiming to double its electric vehicle and plug-in hybrid exports from 2024 with Europe identified as a key growth market. The automaker is adapting by launching a new mini-EV specifically for Japan's market.

To mitigate the pressure in the domestic market, BYD has initiated new rounds of discounts on its models, including the Qin Plus, which demonstrates the ongoing need to attract buyers amid increasing competition. This downward trend in sales is a notable shift for BYD as it is experiencing a fall in quarterly car sales for the first time since 2020.