Chinese EV maker BYD seems to not be moved by the significant price cuts implemented by its closest rival Tesla at the start of the year.
BYD reportedly disclosed a Q4 profit rise of 11 times over the prior year.
BYD’s position in the EV industry
American automaker Tesla is undoubtedly dominating the EV industry in the west. However, China’s BYD has swiftly beaten Tesla in the East.
Remarkably, BYD is now on track to overthrow long-time king VW for overall regional superiority with an “11-fold” increase in Q4 net profit YoY.
BYD’s report indicates it has gained $1.06 billion net profit in Q4 alone. It represents a YoY increase of 1,112.62% from just $87.4 million in the same period last year.
Indeed, the Chinese conglomerate’s biggest accomplishment was the sales of BYD electric vehicles.
BYD’s recent achievements
In terms of cumulative sales over the last four months, it has overtaken long-time leader Volkswagen. BYD’s EV sales during the first two months of this year made up 41% of China’s NEV industry.
Furthermore, BYD also attained a record-breaking profit margin of 20.4%.
Another remarkable achievement of the Chinese automaker is its battery business. Its famous LFP Blade Battery now holds 17.6% of the LFP battery industry worldwide.
Western investors are surprised by these outcomes as they witnessed the EV price war in China. Many of them believed that Tesla had significantly hurt the Chinese power battery and EV giant. Well, it is obviously not the case.
See Also:
- Legendary US investor says BYD is outselling Tesla in China by a margin that is “almost ridiculous”
- BYD plans to build another $1.2 billion EV battery plant in China, per filings
- China NEV insurance registrations for Jan 16-Jan 29: BYD 29,988, Tesla 10,852, NIO 3,435
- China’s BYD enters the passenger car market in India as part of a global push
- China’s BYD Auto overtakes Tesla as top-selling EV brand globally
The auto market in China is indeed growing rapidly with increased competition. In order to cope with expanding local competition from NIO and Xpeng, BYD plans to expand its auto business and roll out more EV models in the future.
