BYD became number 1 by defeating Tesla, yet why did the profit fall? Know the real reason

BYD, the world’s largest electric vehicle company, has made a big record in the year 2025. The company’s total earnings reached $116 billion, which is more than Tesla. While Tesla’s income was around $94.8 billion, BYD left it behind. Not only this, BYD sold 22.6 lakh electric vehicles, while Tesla’s sales stood at 16.4 lakh units. In this way BYD has now become the world’s largest EV company. But the surprising thing is that even after such a huge success, the company’s profits have decreased. Let us know the reason behind this.

What is the main reason for declining profits?

The biggest reason for the decline in BYD’s profits is increasing competition and falling prices. Especially in the Chinese market, there is a tough competition between EV companies. Here companies like Geely are growing rapidly, due to which BYD has had to reduce the prices of its vehicles. When companies reduce prices to sell more, their profits decrease. The same has happened with BYD also. Apart from this, BYD sales in China have also seen a decline in the last few months. At the beginning of 2026, the company’s sales have decreased by about 36%. This has also affected profits.

New technology and global plan

Despite declining profits, BYD is now preparing for the future. The company is working on new technology, like the new blade battery, which can be charged in a very short time. Along with this, new models are also being launched, which have modern features. BYD no longer wants to depend only on China. The company is rapidly expanding its business in countries like Brazil, Argentina and UK. Its target is to sell more vehicles abroad by 2026, so that earnings can increase.

Will benefit from increasing demand for EV

Due to increase in oil prices in the world, people’s inclination towards electric vehicles is increasing. Companies like BYD can benefit from this in future. However, at present the company is facing pressure in profits due to price war and competition.

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