Why is stock of chinese car manufacturer byd dropping

The stock price of BYD, a Chinese car manufacturer, has experienced a decline on July 31, 2025. The drop in BYD's stock price can be attributed to **BMW's Margins Decline Due to US Tariffs and China Slump**. BMW's profitability declined in the second quarter due to lower sales in China and extra costs from President Trump's trade war. This has impacted BYD, as the company faces competition from BMW and other German luxury car makers in the Chinese market. The European Union's trade deal with the US has lowered duties on auto imports from the EU, which has further impacted BYD's pricing and market share in China. The company's automotive operating margin fell to 5.4% in the three months through June, which is still within its guidance range for the year, but it indicates a decline in profitability. The carmaker expects tariffs to drag down the margin by 1.25 percentage points in 2025. This has created a challenging environment for BYD and other Chinese car manufacturers competing in the Chinese market, as they face increased competition and pricing pressure from more affordable Chinese domestic manufacturers. |code|Ticker|Name|Date|Percentage Change|market_code| |---|---|---|---|---|---| |BYD|BYD.N|Boyd Gaming|20250725|4.3975|169| |BYD|BYD.N|Boyd Gaming|20250728|0.4887|169| |BYD|BYD.N|Boyd Gaming|20250729|-0.7179|169| |BYD|BYD.N|Boyd Gaming|20250730|1.1547|169|