BeijingChinese electric vehicle maker BYD reported improved second-quarter net profit thanks to its expanded market lead, although it led a prolonged price war with aggressive discounts on its best-selling models.
BYD’s net profit hit 9.1 billion yuan ($1.3 billion) in the April-June quarter, up 32.8 percent from a year earlier and its fastest growth since late 2023, while revenue rose 25.9 percent to 176.2 billion yuan, it said in a stock exchange filing.
Sales of automobiles and related products accounted for 75.8 percent of BYD’s total revenue.
BYD has been expanding its international presence, including in Europe and Mexico, where it plans to set up manufacturing plants. The company faces an additional 17 percent tariff for exporting electric vehicles from China to countries in the European Union.
“For vehicles priced below 150,000 yuan ($21,046) in China, BYD has absolute pricing power because, apart from glass and tires, it makes almost everything in-house,” said Rosalie Chen, an analyst at Third Bridge.
Aiming to increase annual sales by 20 percent this year, BYD has been offering aggressive discounts for its best-selling EV series, Dynasty and Ocean, to secure its leading position with a share of more than one-third in China’s new energy vehicle market.
BYD has outpaced the combined sales of Volkswagen’s two joint ventures in China by 14.5 percent in the first seven months. It is expected to overtake Tesla as the world’s largest seller of electric vehicles this year with a 17.7 percent share of the global market, versus Tesla’s 17.2 percent, according to estimates by Counterpoint Research.
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– 2024-09-03 03:35:30