Despite engaging in price discounts, BYD manages to increase its earnings.
In the heat of cutthroat competition within its homeland, BYD manages to boost its earnings significantly. The profit margins of the Chinese electric vehicle brand soar by an impressive 33% to reach 9.1 billion yuan (approximately 1.15 billion euros) as of half-year figures, according to the firm's announcement. This marks the most significant profit growth since the closing of 2023. Meanwhile, revenue climbed from the second to the third quarter by 24%, reaching an impressive 176.2 billion yuan.
Refusing to back down in the relentless price rivalry on the local market, BYD has successfully expanded its market share in China during the second quarter. Volkswagen found itself trailing behind as the market leader, enabling BYD to defend its position. The company's strategy relies on vertical integration, with a focus on manufacturing crucial components, such as batteries, in-house.
With an ambition to grow its annual revenue by 20%, BYD is offering attractive discounts on its most sought-after Dynasty and Ocean series. The ultimate goal is to maintain its dominance, aiming to hold a share of over 33% in the booming sector of new energy vehicles (NEVs) in China. This category encompasses not just pure electric vehicles but also those featuring hybrid powertrains.
BYD shipped 426,039 fully electric cars in the second quarter, marking an uptick of 21% compared to the previous year. Tesla, the competition, recorded 443,956 units sold. BYD managed to momentarily surpass Tesla during the fourth quarter. In Germany, BYD reported 1,432 vehicle deliveries to clients as per the Federal Motor Transport Authority's data. At the start of the year, there were 4,317 BYD-branded vehicles registered in the country.
Other prominent Chinese electric vehicle manufacturers are currently advancing aggressively overseas, in response to the heated price competition at home and the growing tariffs. In Europe, BYD has set its sights on potential expansion opportunities, such as its planned plant in Hungary, among other locations.
BYD's strategy to manufacture batteries in-house significantly contributes to its cost savings in the manufacture of motor vehicles. This vertical integration allows BYD to offer competitive prices and attractive discounts on its popular Dynasty and Ocean series, contributing to its market dominance in China's new energy vehicle sector.
