BYD Reports Strong Q2 Earnings Growth

Chinese electric vehicle maker BYD reported a 32.8% increase in second-quarter net profit, reaching 9.1 billion yuan ($1.3 billion), despite challenging market conditions. The company's first-half profit rose 24.4% to 13.6 billion yuan ($1.91 billion), although it fell short of analysts' expectations. BYD's growth is attributed to its strong vertical integration strategy and aggressive pricing on its EV models, helping it secure over a third of China's new energy vehicle market. In the second quarter, China's EV penetration rate surged to 45%, driven by price cuts across the industry. Meanwhile, Li Auto also reported an 86.2% jump in quarterly profit, highlighting the competitive landscape among the only two profitable EV makers in mainland China. As BYD expands internationally, it faces challenges such as tariffs on exports to the EU, yet it remains poised to potentially surpass Tesla as the largest EV vendor this year.