After four straight quarters of decline, BYD has managed to reverse the trend. The world’s largest EV maker, which was struggling in an overheated home market, posted a second-quarter net profit of 8.2 billion yuan (roughly 1.05 billion euros).
That is a 30 percent year-on-year jump and the first time profitability has risen since early 2025.
The company disclosed the figures in its interim report, and while the headline looks healthy, the underlying picture is somewhat messier. Though net profit rose, total revenue actually declined by 7% (344.8 billion yuan) in the second quarter.
This points to a market reality where BYD is still facing waning customer interest in China. Domestic demand remains a top worry. China’s overall vehicle market contracted 21 percent in July.
But how did BYD manage to grow its profit against the backdrop of shrinking revenue? It sells more abroad, and it also sells more higher-end vehicles.
BYD exported roughly 792,000 vehicles in the first half of 2026, a whopping 68 percent surge year-on-year. Exports now make up 44 percent of the group’s total volume, up from negligible levels just a few years ago. July was a record month: nearly 180,000 vehicles shipped overseas, more than double the figure from July 2025.
As for Europe, this winning streak might come to an end when regulators adopt punitive tariffs for plug-in hybrid cars made in China. Also for BYD, this driveline is a bestseller.
Fewer but more expensive
But until that happens, those foreign sales are juicing margins. BYD can fetch better prices outside China, where a vicious price war with Xiaomi, Xpeng, and a swarm of domestic startups has crushed profitability.
There is one bright spot in China. BYD’s premium labels – Denza, Fang Cheng Bao, and Yangwang – sold a combined 228,000 units in the first half, a 61 percent jump.
They now account for 12.6 percent of passenger-car volume, lifting average transaction prices even as mainstream sales stall. The bottom line is that BYD in China is selling fewer but more expensive cars.
Overall, the picture remains grim. Because of a disastrous first quarter, BYD remains on a negative slide. Putting both quarters together, net profit for the half-year still drops 20.5 percent. BYD insists that currency pressure from foreign exchange rates masks stable underlying profitability.
On top of that, Chairman Wang Chuanfu pinned the shortfall on the tight supply of second-generation Blade Batteries, which are still ramping up. Even after six months of line upgrades, battery production remains constrained. Wang noted bluntly that this year’s sales depend on how many cells the factories can produce.
Flashcharging soars
If there is one area where BYD doesn’t seem hampered by supply constraints, it is charging infrastructure. Last week, the company inaugurated its 10,000th Flash Charging station, just under six months after unveiling the 1.5-megawatt hardware. The network now covers 325 cities and has already served 1.83 million registered drivers. One in three does not own a BYD.
The goal is 20,000 stations inside China by year-end, split between 18,000 urban sites and 2,000 highway locations. That would require roughly 80 new stations per day, up from the current average of 55. Aggressive, but the company has already proved it can move fast.
Globally, the ambition is even larger. BYD wants 6,000 Flash Charging stations outside China, including 3,000 in Europe using CCS2 connectors. With no other competitor offering – nor planning, as it seems – such high convenience for charging, BYD bets on a usp that can uphold its foreign momentum.
