stumbling

Byd just live His first stumble In more than three years. The Chinese electric car giant, who managed to dethrone Tesla as the largest world manufacturer of electric vehicles, has seen how its benefits 30% collapse In the second quarter of 2025. The Batacazo has made the alarms jump on Wall Street and reflects the devastating effects of the price war that the Chinese market ravages. His first stumble. The byd numbers between April and June have been to forget. The net profit fell to 6,400 million yuan (about 890 million euros), compared to 9,100 million of the same period of the previous year. It is the first quarterly fall in more than three years for a company that It seemed unstoppable. His actions in Hong Kong 8% collapsed After knowing the results. The price war charges its toll. Behind this collapse is the brutal competition in China, where local brands have engaged in A spiral of discounts unprecedented to gain market share. As recognized Byd itself in its results report: “The increase in price competition and the frequent appearance of excessive marketing” have exercised “an adverse impact on industry development.” The average prices of cars in China have fallen 19% in the last two years, standing around 165,000 yuan (about 22,900 euros). Symptoms that worry. Beyond the benefits, byd Shows financial voltage signs. Its working capital deficit has expanded up to 122.7 billion yuan at the end of June, compared to 95,800 million March. In addition, its asset debt ratio has risen to 71.1%. The company has even been forced to slow down production and delay capacity expansions in its Chinese factories. An annual pending objective. Byd had marked as a goal to sell 5.5 million cars this year globally, but at the end of July he had only managed to place 2.49 million unitsjust 45% of the objective. Analysts such as those of Nomura have reduced their forecasts between 5 and 5.2 million vehicles, while Rosalie Chen, from the firm Third Bridge, qualifies of “pessimistic” the possibilities that the Chinese brand meets its ambitious objectives. Europe as salvation table. The only positive note comes from abroad, where Byd is gaining ground to sets established as Tesla. In July he registered More than 13,000 new registrations In Europe, a growth of 225% year -on -yearaccording to the European Association of Automobile Manufacturers. This international thrust has allowed the company to continue to grow 14% to 200.9 billion yuan, despite the collapse of benefits.