Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeElectric VehiclesAutosBYD profit rises for first time in five quarters on exportsOverseas markets have been the growth driver for Chinese carmakers all year, with July being no exceptionAuthor of the article:Last updated 23 minutes ago BYD is navigating an increasingly hostile trade environment that risks slowing its overseas expansion plans. Photo by Sean Gallup/Getty ImagesBYD Co.’s profit rose for the first time in five quarters as surging exports and demand for some of its pricier models helped the world’s largest electric-vehicle maker overcome a downturn in China.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorSecond-quarter net income climbed 30 per cent from a year earlier to 8.2 billion yuan (US$1.2 billion), according to figures derived from first-half earnings reported on Friday. Earnings were slightly above the average analyst estimate compiled by Bloomberg, while revenue unexpectedly slipped about three per cent to 194.6 billion yuan.The results bring a much-needed boost for BYD as intense competition with nimble rivals like Xiaomi Corp. and Xpeng Inc. resulted in a yearlong profit slump. That underpinned the Chinese auto giant’s aggressive push into South America and Europe, where a rollout of new models and a refresh of some popular offerings are driving sales upward — at higher profitability.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againIn a milestone for the company, sales from overseas rose 34 per cent to 181.3 billion yuan in the first half, accounting for 53 per cent of the total and surpassing revenue generated in Greater China for the first time.At home, the world’s largest car market, the prolonged industry downturn persisted. Most carmakers, including BYD, saw their July revenue fall from a year earlier as fierce discounting of car prices continued, according to Bloomberg Intelligence. Overall, total passenger vehicle sales fell 21 per cent last month in the country, according to China’s Passenger Car Association.Meanwhile, the government is stepping up scrutiny on the industry, vowing to take a close look at automakers’ rapid development cycles to make sure they aren’t cutting corners related to safety with new models.BYD sold 1.81 million cars in the first six months of the year, leaving it well behind its annual goal of 5 million to 5.5 million.Investors are now focused on BYD’s second half.Though deliveries in July fell short of putting the company on track to meet its annual target, analysts predict BYD’s earnings rebound will accelerate for the rest of the year as the carmaker works out its production issues and exports continue to climb. Estimates compiled by Bloomberg even call for profits and revenue to hit record highs in the fourth quarter.Overseas markets have been the growth driver for Chinese carmakers all year, with July being no exception. Total overseas sales of passenger vehicles from China surged 88 per cent last month, according to PCA.However, the international push has also caused some bloating. BYD’s inventory at the end of June increased to 109 days’ worth of vehicle sales, up from 79 days a year earlier, because of a “long shipping cycle,” the company said.BYD is also having to navigate an increasingly hostile trade environment that risks slowing its overseas expansion plans.The European Union is considering new tariffs on Chinese hybrid vehicles, Handelsblatt reported in June, curtailing a lucrative market that’s emerged after the bloc imposed tariffs on fully electric cars from the Asian nation.Separately, BYD’s flagship factory under construction in Hungary has come under scrutiny over alleged labour abuses by subcontractors, while a change of government in Budapest has triggered a probe into state subsidies, tax breaks and environmental exemptions previously granted to BYD. The company, which has said it’s followed the laws and regulations there, has delayed the start of production in Hungary until the fourth quarter, roughly a year behind its original target.Meanwhile, BYD is also seeking to make its mark in places like Japan, which has been so tough to break into that global automakers such as General Motors Co. have long abandoned their attempts to do so. It recently began sales of the Racco, a tiny EV designed specifically for Japan’s narrow roads, entering the biggest segment of the country’s auto industry. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.