By Jiahui Huang

Chinese auto giant BYD reported a rise in first-half net profit amid concerns about whether the company can meet its sales target for the year.

Net profit for the first six months increased 14% to 15.51 billion yuan, equivalent to $2.18 billion, the electric-vehicle maker said Friday. Revenue rose 23% from a year earlier to 371.28 billion yuan.

Second-quarter net profit was 6.36 billion yuan, given net profit of 9.15 billion yuan in the first quarter, according to a Wall Street Journal calculation. That missed a Visible Alpha consensus estimate of 11.94 billion yuan. Quarterly revenue was 200.92 billion yuan, below analysts' expectations of 233.08 billion yuan.

The automaker's revenue from the Chinese market rose 12% in the first half. By comparison, its overseas business revenue climbed 50% during the period, reflecting the company's aggressive expansion abroad to offset challenges in its home market.

The results, which showed a second-quarter miss, add to concerns over BYD's ability to hit its full-year sales goal after weaker-than-expected sales in July. Softening domestic demand last month coincided with Beijing's campaign to reduce competition, making it difficult for Chinese automakers to entice buyers.

Already, margins have narrowed. The world's top EV seller said its first-half gross margin slipped to 18.01% from 18.78%, weighed by its EV businesses.

BYD offers a wide range of models and has relied on price cuts to defend market share in China. That strategy is losing its edge, however, as authorities have moved to curb "unhealthy competition" in the domestic EV market and sought to rein in excessive capacity to reduce price wars.

In its latest push overseas as domestic demand slows, the company plans to set up an EV assembly plant in Malaysia.

On Friday, BYD said its global expansion strategy is a key initiative for the globalization of its premium brands. The company's "Denza" and "Yangwang" brands have successfully launched in several overseas markets, and it has plans to introduce more cars in more overseas markets.

BYD, known for its low-cost EVs, has also been sharpening its technology in autonomous driving as it looks to expand into the premium-car market. The automaker's research-and-development expenses rose 51% to 29.60 billion yuan in the first half.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

August 29, 2025 09:54 ET (13:54 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.