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Electric & new energy vehicles
BusinessChina Business

China EVs: BYD interim profit soars 145% on record deliveries as bruising competition shaves profit margin

  • The Warren Buffett-backed carmaker’s second-quarter profit jumped 145 per cent to US$933 million, in line with market expectations
  • Deliveries rose 98.2 per cent year on year to a record 703,561 pure electric and plug-in hybrid vehicles in the second quarter

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Visitors look at BYD’s ATTO 3 electric car at the Big 2023 Motor Sale trade event in Bangkok, on Monday. Photo: EPA-EFE
Daniel Renin Shanghai
BYD, the world’s largest electric-vehicle maker, reported a 145 per cent jump in second-quarter profit, buoyed by record deliveries in the face of a heightened price war in mainland China that also ate into its margins.

The Shenzhen-based company’s net profit for the three months ended June rose to 6.8 billion yuan (US$933 million), in line with market expectations, according to a filing to the Hong Kong stock exchange on Tuesday evening. It was BYD’s second-highest quarterly profit after the 7.3 billion yuan in the fourth quarter of 2022. Revenue rose 67 per cent year on year to about 140 billion yuan.

The carmaker, which counts Warren Buffett’s Berkshire Hathaway among its shareholders, posted a net profit of 10.95 billion yuan in the first half, up 205 per cent year on year.

The second-quarter data was derived by comparing its interim earnings and its first-quarter results reported in April.

The 3 millionth electric car produced by BYD rolls off the production line at the company’s headquarters in Shenzhen, on November 16, 2022. Photo: Handout
The 3 millionth electric car produced by BYD rolls off the production line at the company’s headquarters in Shenzhen, on November 16, 2022. Photo: Handout

“Rising sales volume drove BYD’s earnings in the first half and consolidated its position as China’s top EV builder,” Huang Chengbao, an analyst at Guolian Securities, said in a research note. “Escalating competition and potential rise in material costs carry risks for BYD’s further growth.”

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