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China’s BYD to post big jump in 2023 profit amid record EV deliveries, even as steep discounts dented margins
- The world’s largest electric car maker expects earnings for 2023 to jump by as much as 86.5 per cent, buoyed by record deliveries
- Its profitability, however, remains far behind rival Tesla because of the American giant’s bigger profit margins
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Daniel Renin Shanghai
BYD, the world’s largest electric car maker, said it expects its earnings for 2023 to jump by as much as 86.5 per cent, buoyed by record deliveries. Its profitability, however, remains far behind rival Tesla because of the American giant’s bigger profit margins.
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The Shenzhen-based company said in a filing to the Hong Kong and Shenzhen stock exchanges on Monday evening that its net profit for last year would come in at between 29 billion yuan (US$4.1 billion) and 31 billion yuan, a jump of 74.5 per cent to 86.5 per cent from 2022. It did not disclose estimated revenue.
Tesla last week posted net income of US$15 billion for 2023, up 19.4 per cent on the year.
BYD, backed by Warren Buffett’s Berkshire Hathaway, handed 3.02 million pure electric and plug-in hybrid vehicles to customers at home and abroad in 2023, up 62.3 per cent from the previous year. Most of its cars were sold in mainland China, with 242,765 units, or 8 per cent of its total deliveries, exported to overseas markets.
Tesla delivered 1.82 million cars worldwide, up 37 per cent year on year.
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China’s BYD overtakes Tesla as world’s largest EV maker
China’s BYD overtakes Tesla as world’s largest EV maker
SDIC Securities said in a research note on Tuesday that BYD’s profit margin per vehicle dropped to about 9,100 yuan, down 1,400 yuan from a year earlier because of the discounts it offered to buyers to sustain growth momentum in sales.
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