BYD, the world’s largest electric car manufacturer from China, posted record profits last year. The Shenzen-based company reported net profit that exploded 81 percent on Tuesday.
In figures 30.04 billion yuan (almost 4 billion euros). However, earnings growth declined steadily from the previous year’s quarters, falling to just 15 percent in the final quarter. Sales in 2023 reached 602.3 billion yuan – 42 percent higher than the previous year.
Batteries for the established order
BYD was founded in 1995, initially producing batteries and started producing cars in 2003. Today the company specializes in hybrid and electric cars. Numerous Western car companies also buy batteries for their electric cars from BYD, including BMW, Mercedes, Audi, Tesla, Toyota and Ford.
In the fourth quarter of last year, the Chinese company replaced its American competitor Tesla as the largest manufacturer of electric cars. Tesla increased its deliveries in the three-month period to 484,507 vehicles by eleven percent compared to the previous year. Nevertheless, the Chinese trumped billionaire Elon Musk’s company with no fewer than 526,409 electric cars delivered. BYD also sold more than 400,000 plug-in hybrids in the fourth quarter.
BYD is waging a discount war
The revised electric Seal sedan, which went on sale on Monday, costs 5.3 percent less than the previous model. It is the 16th vehicle since the beginning of this year for which BYD has reduced the price after a facelift.
BYD is responding to the fact that the electric car market in China is no longer growing so strongly. Last year, sales figures only increased by 21 percent – compared to 74 percent in 2022. Competitors such as Tesla, Geely, GAC Aion, Leapmotor and Xpeng enter the price war with BYD, but do not offer discounts that are not nearly as high.
China-focused market researcher John Zeng of GlobalData in London said BYD could offset the price cuts with savings and with increasing exports, which are subject to higher prices. Last year, the 240,000 vehicles exported accounted for eight percent of production, and Zeng expects 300,000 to 400,000 export cars by 2024.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
