Chinese automaker BYD proudly disclosed Monday that its net profit grew three times per its record demand in the first half of 2023.
The company reported a year-on-year net profit increase of nearly 205% to 10.95 billion yuan ($1.5 billion) from January to June, TechXplore reported, citing a BYD statement in a Hong Kong Stock Exchange.
BYD’s H1 2023 net profit aligns with its July guidance of 10.5 billion to 11.7 billion yuan.
In addition, the company’s sales also increased YoY BY 73% to 260.1 billion yuan in the same period.
How did BYD’s net profit improve from Q1 to Q2?
BYD enjoys constant revenue improvement per quarter. CnEVPost reported that the Chinese electric vehicle giant recorded its second high in Q2 2023 of RMB 139.95 ($19.2 billion) following its Q4 2022 results.
Remarkably, that figure represents a substantial growth of 67.06% YoY and 16.45% from Q1 2023.
On the other hand, its Q2 2023 net profit grew 114.85% YoY and 65.23% quarter-on-quarter to 6.824 billion yuan ($936 million). This result also marks the company’s second-highest record after Q4 2022.
BYD sold 703,561 new energy vehicles (NEVs) in Q2 2023. Of that total, 700,244 units were passenger cars, and 3,317 were commercial vehicles.
BYD hits 5 million NEV production milestone
BYD advanced as the first automaker to hit its five million NEV production threshold in early August. This significant achievement ultimately made the Chinese brand the “world’s leading manufacturer of new energy vehicles and power batteries.”
In hindsight, BYD achieved its first million NEV production on May 19, 2021. Therefore, the automaker managed to produce 5 million units in just over 2 years.
The Shenzhen-based automaker ultimately halted its internal combustion engine-powered vehicle production in 2022. Since then, BYD focused on manufacturing hybrid and battery-electric models.
China leads EV development globally
Industry analysts claim that China, the world’s largest automotive and EV industry, dominates the global market regarding EV development.
The Daily Star noted that China’s EV-related technology investment began in the early 2000s.
The federal and local governments have already allocated billions of dollars to provide the necessary tax exemptions and subsidies to boost NEV adoption. It has also offered public transport contracts to electric automakers.
In effect, domestic and foreign automakers surge in the country as they aim to take a portion of the rapidly growing market.
“During the first half of 2023, Chinese automakers capitalised on the shift towards electrified, intelligent and networked vehicles, emerging as strong competitors in a fierce market.”
BYD
Despite the intense competition, BYD continued to rank “first in the sales volume of passenger vehicles among Chinese auto companies.”
See Also:
- BYD to hit the 5 million unit production threshold on August 9
- BYD nudges local brands to penetrate the global market and “demolish the old legends,” gains Tesla CEO’s respect
- BYD to intensify competition with Tesla with its new Denza SUV
- BYD discloses F brand’s official name, maiden model to launch as soon as this year
- BYD unveils Dolphin’s pricing and specs in another key right-hand drive market
BYD undoubtedly leads the Chinese NEV market with its innovative and affordable electric vehicle models and power batteries. It has also dominated the industry as it competes with the EV pioneer Tesla.
Considering the intensifying competition in the domestic market, it would be exciting to see how these two major EV players fare in H2 2023.
