BYD 1Q26 First Take: With Q1 deliveries pre-announ

BYD 1Q26 First Take: With Q1 deliveries pre-announced at 700k units (-30% YoY) and sentiment broadly bearish, BYD delivered a 'better-than-feared' print. Despite revenue and profit being dragged by lower volume, ASP, auto GPM, and profit per vehicle all beat street expectations.

The core driver was a step-change in the mix of high-margin overseas models. This effectively offset GPM dilution from domestic inventory clearance and negative scale effects.

① Total revenue was RMB 150.2 bn (-11.8% YoY), with auto revenue at RMB 112.0 bn (-16.1% YoY), mainly due to lower auto volume.

ASP reached RMB 160k this quarter, up 20% vs. RMB 133k in 1Q25 and above the street’s RMB 144k estimate.

Overseas expansion is not only about volume but also price/mix quality.

Export mix surged from 21% in the prior-year quarter to 47% in Q1. Given overseas ASP is ~1.5x domestic, this structural shift offset the ASP drag from clearing older models in China.

② Total GP was RMB 28.25 bn (-17.4% YoY).

Auto GPM was 23.4%, up 180 bps QoQ and above the street’s 21.7%.

In 2H25, BYD’s overseas GPM exceeded domestic by ~1,100 bps.

With exports approaching half of volume, BYD has pivoted strategically. It is moving from domestic price competition to prioritizing profit capture globally.

③ Profit per vehicle was RMB 5.8k, down from RMB 6.7k in 4Q25 but above the street’s RMB 3.4k.

The QoQ decline was driven by discounts tied to domestic clearance of older inventory and a higher opex ratio on a smaller revenue base (negative operating leverage).

In addition, FX losses were recognized (financial expenses fell RMB 4.0 bn YoY vs. 1Q25).

Ex-FX and other noise, core OP per vehicle (GP minus taxes and opex) was RMB 5.9k, above RMB 5.6k in the prior-year quarter.

Core operating profit was RMB 4.12 bn (-26.5% YoY).

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