Chinese EV giant BYD reports third-quarter profit up 350% year-on-year - PingWes...

Chinese EV giant BYD reports third-quarter profit up 350% year-on-year

Chinese EV giant BYD reports third-quarter profit up 350% year-on-year

10 hours ago

BYD posted a better-than-expected third-quarter earnings on Friday, with revenue increasing 115.59% year-on-year to 117.081 billion yuan ($16.14 billion), net profit growing 350.26% year-on-year increase of to 5.716 billion yuan.

Sales of BYD’s new energy vehicles (NEV), which include plug-in hybrids, pure battery and hydrogen-powered models, also hit a record high of 538,704 units in the July to September quarter, up 194% from a year earlier.

In the first three quarters of this year,  BYD, also known as the battery-making powerhouse in China, generated 267.688 billion yuan in revenue, a year-on-year growth of 84.37%; net income was 9.311 billion yuan, a year-on-year increase of 281.13%.

The combined sales of its NEV increased 250% in the first nine months to 1.2 million units, outpacing a 110% rise for the overall EV segment. By comparison, Tesla sold just over 318,000 electric vehicles in China during the first nine months of the year.

Additionally, its power battery and energy storage battery business has also improved. During the first three quarters, the installed capacity of BYD's batteries reached 57.493GWh, representing almost 20% of the market share. In the same period a year ago, it held a 16% share of the market.

BYD is expanding its battery-powered passenger car business internationally. Previously, it focused on supplying public institutions in overseas markets with commercial vehicles such as buses, trucks and more.

Last August in Norway, BYD launched the Tang, the company's first sport utility vehicle for the European market, kicking off a steady expansion of its overseas sales network. In July, it announced that three EV models would be released in Japan, starting in 2023.

Also, it claimed last month that it will begin selling three new models in Europe by year's end, and that it would establish a factory in Thailand in 2024 with the capacity to make 150,000 passenger cars annually.

Although starting from a low base, sales of BYD's NEV in international markets have been on the rise. 16,854 vehicles were sold by the company internationally in the third quarter, including 4,026 in July, 5,092 in August, and 7,736 in September.

In the first three quarters of this year, the company's target of delivering 1.5 million vehicles in 2022 has been 78% completed. According to Soochow Securities' estimations, BYD may generate approximately 10,000 yuan in net profit for each car sold. While government subsidies may be reduced next year, the cost is likely to remain around 10,000 yuan as the company scales up production, the agency said.

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