BYD Profit Drop: Warning for Electric Car Owners

Intensifying Competition in Chinese EV Market

• ⚠️ BYD Executive Vice President Stella Li warned at IAA Mobility 2025 that competition in the Chinese electric car market has intensified significantly.
• 🎯 She believes the market will eliminate many automakers, stating that even 20 producers are too many for the sector, while China currently has 129 EV and hybrid brands.
• 💡 The Chinese government, under Xi Jinping, had promised to curb price wars and aggressive promotions by automakers, which impacts market dynamics.

BYD's Financial Downturn

• 📉 Without the ability to offer discounts, some brands may not survive, and BYD experienced its first profit drop in three years during the second quarter of 2025.
• 📊 This represented a 30% retraction in profits, amounting to approximately R$4.7 billion (6.4 billion yuan).
• 🏠 Additionally, BYD dealerships in two Chinese provinces (Lonang and Shandong) have already closed their doors, indicating market difficulties.

Advice for BYD Owners

• 🔑 The speaker strongly advises current BYD owners to sell their vehicles quickly while there is still time, due to anticipated difficulties.
• 📉 Concerns were raised about the terrible resale value of BYD cars, especially the more expensive models, with predictions of significant depreciation.
• 💡 A comparison was drawn to Jac Motors, which also faced market failure in Brazil, leading to substantial losses for its car owners.

Concerns Over BYD Vehicles and Operations

• 🛠️ A major concern for BYD owners is the lack of parts and service, as the vehicles use non-standard technology and there is no manufacturing plant in Brazil, only a distribution center.
• ⚠️ Allegations were made regarding BYD's use of slave labor in Bahia, with claims of government complicity and a lack of accountability.
• 🔒 There are also data privacy concerns with Chinese technology, including BYD cars and Xiaomi phones, suggesting potential monitoring by the Chinese Communist Party.