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BYD reported its earnings results for the final quarter of 2025 last Friday, disclosing its first annual profit decline since 2021.
In the annual report that followed the results, the world’s largest electric vehicle maker said that it received 12.47 billion yuan ($1.8 billion) in government subsidies related to its daily operations in 2025.
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Government subsidies for Chinese automakers have become a flashpoint in the industry for years.
In October 2024, the European Union imposed provisional tariffs on Chinese-made EVs in 2024, citing what it described as unfair state subsidies.
The United States maintains a 100% tariff on Chinese EVs and a ban on Chinese software over connected vehicles and data concerns.
Canada levied a 100% tariff on Chinese EV imports before reducing it to 6.1% last January under a quota system that allows up to 49,000 imported vehicles to benefit from the much lower duty.
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According to the company’s annual report filed with the Hong Kong and Shenzhen stock exchanges on Friday, the subsidies represent 31.4% of BYD‘s total pretax profit of 39.73 billion yuan, and 38.2% of net profit attributable to shareholders of 32.6 billion yuan ($4.71 billion).
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