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BYD’s third-quarter profit soars to record after beating Tesla and others in EV deliveries, capping costs

  • BYD, the world’s largest electric vehicle (EV) maker, reports an 82.2 per cent rise in third quarter profit
  • The carmaker has greater control over costs, profit margin and deliveries as it owns the entire supply chain of EV batteries, the main factor influencing car prices

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A sign above a soon-to-open BYD Co. automobile showroom in the Mayfair district of London, UK, on Thursday, Sept. 14, 2023. China’s EV industry has thrived due to “innovation” and a “complete industrial supply chain,” China’s Commerce Ministry said. Photo: Bloomberg
Daniel Renin Shanghai
BYD, the world’s largest electric vehicle (EV) maker, reported on Monday its highest ever quarterly profit for the period ending September, buoyed by surging deliveries and a cost-cutting campaign driven by its greater control over its supply chain.
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The Shenzhen-based company, which is backed by Warren Buffett’s Berkshire Hathaway, said in a filing to both the Shenzhen and Hong Kong stock exchanges, that net income between July and September stood at 10.4 billion yuan (US$1.4 billion), which is in the middle of the company’s forecast range of 9.55 billion yuan to 11.55 billion yuan. It beat the previous record earnings of 7.3 billion yuan posted in the fourth quarter of 2022.

BYD’s third-quarter profit translates into an 82.2 per cent jump from the same period a year ago and a 53 per cent quarter on quarter increase. Revenue in the third quarter climbed 36.5 per cent on year to 162.2 billion yuan.

The company said in an exchange filing on October 17, when it made a forecast of its third-quarter earnings, that it expected a record profit on the back of improving brand influence and strong industrial chain-wide cost-control.

People look at a BYD Company car, at the 2023 IAA Mobility auto show, in Munich, Germany, September 10, 2023. Photo: Reuters
People look at a BYD Company car, at the 2023 IAA Mobility auto show, in Munich, Germany, September 10, 2023. Photo: Reuters
BYD, which dethroned Tesla as the world’s largest EV firm in 2022, sold 822,094 vehicles in the three months ended September, a 17.4 per cent rise from the previous quarter and a quarterly record.
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In September, the company, which is controlled by Chinese billionaire Wang Chuanfu, posted sales of 287,454 units, an increase of 4.8 per cent from August, rewriting its own sales record for the fifth consecutive month.
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