00:00Chinese electric car maker BYD has reported record sales for 2025.
00:05Full-year net revenue climbed 3.5% to over $115 billion.
00:13However, profits dropped for the first time in four years,
00:17nearly 20% down on 2024 to $4.7 billion.
00:21Now, it's well below analyst expectations,
00:24but the firm's strategy of heavy discounts to become the world's top EV seller
00:29has had an impact on the bottom line.
00:33Foreign sales proved a bright spot, though.
00:35BYD's exports soared 140%,
00:39shifting more than a million overseas units for the very first time.
00:44Let's speak now to Peter Wells,
00:46Director of the Centre for Automotive Industry Research at Cardiff University.
00:52Peter, thank you so much for your time.
00:53So BYD, it's selling more cars than ever before,
00:56but profits are down because it's discounting.
00:59It's prices.
00:59Is this strategic move a bit of a gamble?
01:04It's a difficult moment for BYD, I think.
01:06Not only is their home market becoming a much more competitive place,
01:10with competitors also driving down prices,
01:13but I think they're going to find more resistance
01:16and find it much more difficult to win growth in those export markets in the future as well.
01:22And they've had a few developmental expenses,
01:25particularly with their autonomous vehicle technology,
01:28that have really yet to show reliability and customer value in the market.
01:33So I think it will be a tough time for BYD.
01:36We're also hearing that platforms like Autotrader, Octopus EVs,
01:41they're reporting spikes in inquiries into electric vehicles.
01:45Do you see this as a direct result of what's going on in the Middle East,
01:48or is there more at play?
01:50Well, there's been a short-term pickup for sure,
01:53not just in the UK, but across many markets.
01:56Consumers are now much more interested in electric vehicles generally.
02:01Underneath that, there has been that long-term growth anyway,
02:04and bear in mind, the supply of choice of vehicles has really improved dramatically.
02:09So we see a combination of effects here.
02:12Freedom in the marketplace, more choice in the market,
02:16powered by existing sentiment, but also by the new effects of the war in Iran.
02:22Do you think that this global crisis is perhaps the tipping point
02:27to move people significantly and more permanently towards EVs?
02:31Because it really is making a case against dependency on fossil fuels, isn't it?
02:36Well, it certainly has highlighted that geopolitical security,
02:40which is kind of the buzz phrase for concerns about battery electric vehicles,
02:44those security concerns apply to petrol and diesel just as much as they do to batteries.
02:50And I think consumers, at least, are already showing a willingness to switch.
02:55I think the concern is, will governments really get behind them?
02:59Will governments continue to support electric vehicle uptake?
03:03For someone considering buying an electric vehicle at this time,
03:07what would your advice be to them?
03:09I would say go ahead with it.
03:11Particularly, even if you can't buy a new one at the moment, look at the used market.
03:15There are so many good value propositions in most markets outside of North America.
03:20So I think there's a lot of choice for consumers.
03:23It's a good time to switch.
03:24And in most cases, consumers will not regret making that switch.
03:29China leads EV adoption.
03:30What lessons do they have that they can share with other markets?
03:36I think you look at China, but also look at somewhere like Norway,
03:39a very different market, but equally shows the same basic lesson.
03:43And that is continuity in policy.
03:47Having a government in place that sees through a continuous regime
03:51in terms of supporting electric vehicles, not just at the subsidies, but across the piece,
03:57bringing those infrastructures out, supporting the use of consumers buying into those things,
04:03but also manufacturers producing them.
04:05All of this is one big package continuously applied,
04:09and that's what creates momentum in the market.
04:13Over the next six to 12 months, what do you see happening in the electric vehicle market,
04:18especially as we know that the price of petrol and diesel is not going to come down
04:24to the levels we've been used to very quickly, even if this conflict wraps up quickly?
04:30Yeah, I think we'll see a continued growth there.
04:33You can't change automotive markets so very quickly.
04:37It takes a long time to bring new models out.
04:39It takes time to build those infrastructures.
04:41It is ongoing.
04:43It has been reinforced by this situation in Iran.
04:46I can see that continuing for the next six to 12 months for sure.
04:50Beyond that point, so much depends on how long that conflict endures
04:54and what lessons governments take from the situation they're currently finding themselves in.
05:00If they just relapse back to the old ways, then we won't see that growth.
05:05If we see governments seizing the moment and really pushing ahead with electric vehicles,
05:11then, yeah, this is a crucial tipping point.
05:13These 12 months will be pivotal for the future of the electric vehicle sector.
05:18Thank you so much.
05:19Peter Wells is Director of the Centre for Automotive Industry Research at Cardiff University.
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