Chinese electric car maker BYD posts 33% profit rise
2024.08.28 08:32
BEIJING (Reuters) -Chinese electric vehicle maker BYD (SZ:) reported a 32.8% rise in second-quarter net profit on Wednesday, its fastest growth since end-2023, despite faltering spending on big-ticket items in the world’s largest automobile market.
Net profit hit 9.1 billion yuan ($1.3 billion) in the April-June quarter, while revenue was up 25.9% from a year earlier at 176.2 billion yuan, it said in a stock exchange filing.
For the first half as a whole, net profit jumped 24.4% to 13.6 billion yuan.
BYD has taken a significant lead in the electric and plug-in hybrid vehicle sector, leveraging on its vertical integration strategy by using key components such as batteries made by the company.
BYD has outsold the combined sales of Volkswagen (ETR:)’s two joint ventures in China by 14.5% in the first seven months. It is expected to unseat Tesla (NASDAQ:) as the largest EV vendor this year with a 17.7% share of the global market, versus Tesla’s 17.2%, according to Counterpoint Research estimates.
It has been offering aggressive discounts for its best-selling Dynasty and Ocean series of EVs to secure its leadership position with a more than one-third share in China’s new energy vehicle market.
BYD has also expanded its international presence, such as in Europe and Mexico, where it has plans to set up manufacturing. The company is facing a 17% additional tariff for exporting EVs from China to countries in the European Union.
Overseas shipments accounted for 11.9% of BYD’s total car sales in the first seven months of the year, nearly double the number for the same period last year, according to Reuters’ calculations based on BYD’s monthly data.
($1 = 7.1252 renminbi)
