Despite engaging in price discounts, BYD manages to boost its earnings.
In the midst of a fierce price battle in its domestic market, Chinese electric vehicle manufacturer BYD saw an uptick in earnings during the spring season. Contrary to expectations, the company's profit soared by a third compared to the previous year, amounting to 9.1 billion yuan (approximately 1.15 billion euros), as reported by BYD itself. This marks the largest profit increase since the closing of 2023. Revenue also saw a 25% increase, rising from 176.2 billion yuan in the second quarter.
BYD managed to carve out a larger market share in China during this period, surpassing Volkswagen to become the leading automaker. Despite the cutthroat competition, BYD has managed to maintain its market position. The company's strategy involves vertical integration, with essential components like batteries being produced in-house.
BYD targets a 20% annual revenue growth and offers substantial discounts on its popular Dynasty and Ocean series. The company aims to solidify its leading role with a share of more than one-third of new energy vehicles (NEVs) in China. This sector encompasses not only electric vehicles but also hybrid models.
BYD delivered 426,039 fully electric vehicles during the second quarter, a 21% increase compared to the previous year. Although Tesla managed to sell 443,956 units, BYD briefly surpassed Tesla in deliveries during the fourth quarter. In Germany, BYD delivered 1,432 vehicles to customers, with 4,317 vehicles registered at the start of the year.
In response to the intense price competition at home and escalating tariffs, major Chinese electric vehicle manufacturers such as BYD are currently expanding their reach internationally. Europe, for instance, is a target location, with BYD planning to build a plant in Hungary among other locations.
BYD's impressive profit growth, reaching 9.1 billion yuan in the spring season, can be clearly seen in the quarterly figures. Moving forward, the company aims to maintain this momentum, targeting a 20% annual revenue growth.
