What happened

BYD published its 2025 financial report: net profit in the fourth quarter fell by 38% year-on-year — to ¥9.3 billion (expectations were ¥12.29 billion). For the full year, net profit fell by 19% — to ¥32.6 billion, the first decline since 2021. Revenue grew by only 3% — to ¥804 billion, the slowest growth rate in six years. Quarterly revenue amounted to ¥237.7 billion, down 13.5%.

Why it happened

The company and analysts point to several factors that together produced the effect: intensified price competition, “excessive marketing activities,” aging of parts of the model lineup, and weak domestic demand. BYD has been experiencing a six-month period of falling sales since September, and buyers are increasingly postponing purchases or choosing cheaper competitors’ models.

An additional blow came from policy: in January 2026 Ukraine abolished tax incentives on imported electric cars — this triggered a collapse in local demand (demand plunged elevenfold in January and thirtyfold in February compared with December).

Markets and numbers to remember

In January–February 2026 BYD sold more than 400,000 cars — which is 36% less than a year earlier. According to the China Association of Automobile Manufacturers, total electric vehicle sales in China for the same period fell by 27.5%. BYD shares on the Hong Kong Stock Exchange have lost about 40% from their peak levels in May, although on Friday after the report the stock closed up roughly 3.5%.

What it means for Ukraine

On one hand, weaker financial results at BYD are a signal to investors and buyers about an overheated market and the need to refresh the model lineup. On the other hand — for Ukraine this is another reminder: political decisions on incentives and taxes have a direct impact on the affordability of electric vehicles and the pace of transport decarbonization. The removal of incentives led to an instant drop in demand and made the Ukrainian market vulnerable to fluctuations among international players.

Expert assessment

“BYD is not the only company struggling with slowing sales.”

— Min Hsun Li, Head of Greater China Auto & Industrials Research, BofA Global Research

“In the long term, high oil prices will become a catalyst for the international expansion of leading electric vehicle manufacturers.”

— Analysts at Citic Securities

Short conclusion

BYD’s result is not just an internal story of a Chinese company. It is a marker for the electric vehicle market: competition has intensified, consumers are prioritizing price and model range, and policy (whether incentives or their removal) can instantly change the demand picture. For Ukraine this is a signal: if the goal is energy and transport security, decisions about incentives and duties should be part of a strategy, not impulsive changes. How to ensure that local consumers and businesses can take advantage of global opportunities is a question that now feels more urgent.