2023-08-30 11:17:00
As the largest electric vehicle manufacturer in China, BYD so far only closes the top ten largest automakers in the world, but continues to develop dynamically even in difficult market conditions. According to the results of the first half of the year, BYD managed to triple its net profit to $1.5 billion and produce about 1.5 million hybrids and electric vehicles. By the end of the year, the output of such machines can reach 3 million units.
Image Source: BYD
BYD’s sales of electrified vehicles grew by 90% in the past six months, while the profit margin reached a solid 18%. With such indicators of profitability, according to respondents CNBC According to analysts, BYD has every chance of succeeding in a tough competition not only with other Chinese electric car manufacturers, but also with Tesla. Recall that both companies expect to produce 1.8 million electric vehicles by the end of this year, which means that they will dominate over hybrids in the BYD supply structure. The Chinese company has not produced cars exclusively with internal combustion engines since last year, and compared to Tesla, it can offer customers not only a wider range of products, but also much more frequently updated. Moreover, BYD offers its vehicles in different price segments, while Tesla is moving very slowly “from top to bottom”. According to Archyde.com, BYD’s eight new versions of existing models introduced this year were between 4% and 25% cheaper than their predecessors, but even so, the company managed to maintain a high profit margin.
BYD’s operating profit margin reached 5%, which is a very good result in the context of the “price wars” unleashed by Tesla at the beginning of the year, because many Chinese competitors are forced to operate at a loss at current prices for electric vehicles in China. In the second quarter, BYD updated its own record for the number of hybrids and electric vehicles produced, it reached 700,244 units and increased by about two times compared to the same period last year. Second-quarter profit rose 145% to $934 million, while revenue rose 67% to $21.4 billion.
According to eyewitnesses cited Bloomberg, at the reporting event, BYD Chairman and Founder Wang Chuanfu said that the company does not give up its intention to produce 3 million hybrids and electric vehicles this year, even despite the slow recovery of the Chinese economy and fierce price competition. A decent profit dynamics will continue in the second half of the year, as the company representatives hope.
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