BYD Co.’s profits more than quintupled last year after the Chinese automaker sold a record number of electric vehicles and intensified its battle with Tesla for market share.
Analysts had expected 15.98 billion yuan, according to data compiled by Bloomberg. .
BYD sold 1.86 million electric and plug-in hybrid vehicles in 2022. This is more than the past four years combined and accounts for about 30% of China’s total new energy vehicle sales. Half of them were battery-only EVs. In comparison, Tesla has sold 1.31 million of his EVs. BYD last year stopped producing cars powered completely by fossil fuels.
The launch of a new luxury EV should help BYD expand its offerings this year and drive further revenue growth. But profit margins could be squeezed by the ongoing price war in China. is high. The war was sparked by Tesla’s cut back on locally produced models.
Warren Buffett-backed BYD is ramping up its overseas presence, including Norway, Denmark, the UK, Thailand and Australia.
BYD shares rose 1.5% in Hong Kong trading before Tuesday’s results. China’s car sales plummeted in January as buying slowed during the Lunar New Year holiday, down nearly 20% since early February when the price war raged, data showed.
The company’s founder, Wang Chuanfu, will host a post-earnings event with analysts and media in Hong Kong on Wednesday morning.