Chinese electric vehicle maker BYD recorded a 55 percent decline in first-quarter net profit, a Hong Kong stock filing showed on Tuesday, as weaker domestic demand added to pressure from cutthroat competition.
The Shenzhen-based EV and battery giant achieved a profit of 4.08 billion yuan ($598 million) during the first three months of the year, the statement showed, down 55 percent year-on-year.
Revenue during the first quarter was 150.2 billion yuan, the statement showed, down 11.8 percent year-on-year.
BYD sold more EVs than Tesla last year, overtaking its US rival for the first time in the category.
However, increasingly challenging conditions in the Chinese market have weighed on profitability.
In March, BYD said that its annual net profit in 2025 fell to 32.6 billion yuan -- down 19 percent from 40.3 billion the year before.
Slowing domestic demand has been diminished further by the recent phasing out of certain consumer subsidies for new-energy vehicles by authorities.
As pressure builds at home, BYD and its industry peers are increasingly setting their sights on foreign markets as promising sources of future growth.
While BYD and other Chinese EV producers come up against hefty tariffs in the United States, the company's success is picking up in Southeast Asia, the Middle East and in Europe.
Analysts say that spiking oil prices as a result of war in the Middle East are boosting global demand for EVs as consumers seek more stable energy costs.
The Chinese automotive sector has been in the spotlight in recent days as Beijing hosts Auto China, the world's largest car show.
More than 1,400 vehicles from hundreds of Chinese and foreign companies have been on display since Friday and until May 3.
While traditional leading brands like Germany's BMW and Mercedes held sweeping areas of the vast halls, most of the event's mega stages were dominated by Chinese brands including BYD and battery giant CATL.
