Sales at Chinese EV leader BYD dropped year over year, even as exports exploded. The Chinese car market isn't healthy, and that pain is spreading elsewhere.
BYD reported first-half numbers on Friday and sales were about $52 billion, down from $56 billion a year ago. Earnings per share dipped 21% to $1.35. There aren't many meaningful Wall Street estimates on FactSet to compare those numbers to.
BYD's U.S.-listed American depositary receipts were little changed in early trading. The S&P 500 was up 0.1%. The Hong Kong Exchange, where shares are listed, is closed now.
Through Friday trading in Hong Kong, BYD shares were down 4% year to date and down 20% over the past 12 months. Brutal competition has been a headwind for the entire sector.
"In the first half of 2026, China's automotive industry entered a stage of profound adjustment and divergence characterized by sluggish domestic demand and robust export growth," said the company in a news release.
Competition has led to lower sales and earnings, leaving BYD to look overseas for growth. BYD sold about 1.8 million electrified passenger vehicles in the first half of the year, down 16% from the same period of 2025. Export sales, however, surged 71% to almost 790,000 units. Those numbers leave domestic sales down about 40%.
The Chinese market, which is the largest market for new cars and new EVs, isn't helping Tesla. It sold about 239,000 fully electric vehicles in China in the first half of 2026, down about 9% year over year.
The flood of exports isn't helping Europe either. It's pressuring profitability. Mercedes-Benz Group, for instance, is expected to generate 2006 operating profit of about $8 billion, down from almost $10 billion a year ago. At the start of 2026, that estimate from Wall Street analysts was north of $10 billion.
Things are tough right now in the overseas car business. BYD earnings confirm that.
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