China’s two biggest carmakers, BYD and Geely, have both reported a 28% jump in third-quarter profit. But the numbers tell the same story for both companies: almost all of the growth now comes from cars sold outside China, while the home market keeps shrinking in a brutal price war.
Q3 2026 at a glance
| Q3 2026 | BYD | Geely Auto |
|---|---|---|
| Revenue | $33.2 billion (+13.6%) | $14.8 billion (+10%) |
| Net profit | $1.50 billion (+28.1%) | $725 million (+28%) |
| Vehicles sold | 1,323,065 (+18.7%) | 812,523 (+7%) |
| Exports | 550,704 (+137%) | 323,442 (+189%) |
| Export share of sales | about 42% | about 40% |
Figures converted from yuan at roughly 6.68 yuan per dollar.
BYD: best quarter since 2024, but a heavier balance sheet
BYD’s quarterly profit was its highest since the end of 2024, and revenue grew year-on-year for the first time after four straight quarters of decline. Still, the result fell short of analyst forecasts, and for the first nine months BYD is roughly flat: revenue of about $84.8 billion was up just 0.01%, while net profit fell 4.2% to about $3.34 billion.
Exports did the heavy lifting. BYD shipped 550,704 cars abroad in the quarter, more than double a year earlier, while sales in China fell by about 12% to roughly 772,000 units. The flip side is on the balance sheet: inventory has grown 60% since January to about $33.2 billion, and cash plus trading securities dropped 45% to about $10.7 billion. BYD says much of the extra stock is cars in transit and at overseas dealers.
Geely: record core profit, falling sales at home
Geely posted record third-quarter core profit of about $780 million, up 32%, and a gross margin of 18%. Over nine months its core profit rose 41% to about $2.23 billion, or roughly $1,000 per car sold. Premium brand Zeekr doubled both sales and revenue and now brings in almost a third of the group’s turnover.
Exports almost tripled to 323,442 cars in the quarter and reached 797,670 in nine months, with Geely aiming for one million overseas sales this year. Based on its monthly filings, Geely’s sales inside China fell by about a quarter in Q3.
In Q3, roughly four out of ten BYD and Geely cars were sold abroad, and exports generated most of the profit growth.
Why it matters
China’s domestic car market is cooling, with new energy vehicle sales down in October and price cuts eating margins. For BYD and Geely, exports have become the main source of profit, which explains the push into Europe, Latin America, the Middle East and Southeast Asia. It also means more Chinese cars will keep arriving in those markets in 2027.
