BYD’s overseas revenue tops China for first time, pointing way out of domestic car slump
Prolonged industry downturn persists into July, the latest period for which sales data is available.
In July, BYD's overseas revenue surpassed its domestic sales for the first time, marking a significant turning point for the company. Overseas revenue increased by 34% to 181.3 billion yuan (US$27 billion), accounting for 53% of total sales, while domestic sales in Greater China fell 31%. This shift in revenue helped boost BYD's profit for the first time in five quarters.
The Chinese market, the world's largest for vehicles, has become increasingly challenging, with annual sales outpacing those of the United States by nearly two-to-one. Chinese carmakers have increasingly turned to overseas markets, where they can charge higher prices for their vehicles, despite geopolitical risks. BYD's interim report noted that the automotive industry in China is undergoing a period of profound adjustment and divergence.
Chinese consumers are increasingly viewing foreign cars as overpriced and outdated, making it difficult for foreign manufacturers like Volkswagen and Mercedes-Benz to succeed. US automaker General Motors, which previously made $2 billion in annual profit in China, has been losing money in the country for the past two years. Despite challenges at home, BYD's overseas growth momentum is expected to continue as the company looks to expand in markets such as Europe, South America, and Japan.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
