BYD and Geely Earnings Falter Under Domestic Price Pressure

BYD saw its net profit climb 28% to 10.02 billion yuan, yet the figure fell significantly shy of the 11.1 billion yuan target anticipated by the market. Revenue reached 221.5 billion yuan, a 13.6% increase that still landed below forecasts. The cumulative results for the first nine months of the year paint a more sobering picture, with net income slipping 4.2% to 22.34 billion yuan.

Geely faced a similar reality, reporting a 28% profit increase to 4.84 billion yuan, missing expectations of 5.19 billion yuan. While the company moved 812,500 vehicles during the quarter, the industry-wide pivot toward exports is meeting resistance. Trade barriers are mounting as the European Union contemplates restrictions on Chinese hybrid imports, following previously imposed tariffs on battery-electric vehicles. Both automakers are now rushing to localize production, with BYD preparing a Hungarian plant for mass output and Geely securing manufacturing partnerships in Spain to navigate the shifting geopolitical landscape.