East Asia China's BYD forecasts 2023 net profit to rise as much as 86.5% y/y

[Beijingwalker]

China's BYD forecasts 2023 net profit to rise as much as 86.5% y/y​

FILE PHOTO: A view of the logo of BYD on the BYD Seal at a press day of the Japan Mobility Show 2023 at Tokyo Big Sight in Tokyo, Japan October 25, 2023. REUTERS/Issei Kato/File Photo
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29 Jan 2024 09:45PM(Updated: 29 Jan 2024 10:49PM)

BEIJING :Chinese electric vehicle (EV) giant BYD said on Monday it expects net profit in 2023 to have risen by as much as 86.5 per cent on the previous year, buoyed by strong sales and cost cuts.

BYD forecast net profit for last year between 29 billion and 31 billion yuan ($4.04-4.32 billion), an increase of 74.46-86.49 per cent from a year earlier, it said in a Shenzhen Stock Exchange filing.

That growth will come in at a much slower pace than in 2022, when BYD posted a 446 per cent net profit surge to 16.6 billion yuan.

"Despite the fierce competition in the industry, the company has achieved significant improvement in profitability and demonstrated strong resilience," BYD said.

The results were achieved thanks to factors including its "rapid growth" of overseas sales, scale advantage and cost control ability in the supply chain, the Shenzhen-based company said.

In comparison, Tesla, BYD's biggest EV rival, reported a 19.4 per cent growth in net profit in 2023 to $15 billion.

In the last quarter of 2023, BYD became the top EV maker by sales, delivering 526,409 vehicles, beating Tesla, which handed over 484,507 cars.

For the whole of 2023, the company sold about 3.02 million vehicles, an increase of 61.9 per cent.

In January, BYD unveiled three battery EV models in Indonesia as it eyes the top market position in the segment in Southeast Asia's biggest economy.

Other than automotive, BYD's business also includes sales of electronic components for smartphones.

China's BYD forecasts 2023 net profit to rise as much as 86.5% y/y

BEIJING :Chinese electric vehicle (EV) giant BYD said on Monday it expects net profit in 2023 to have risen by as much as 86.5 per cent on the previous year, buoyed by strong sales and cost cuts.BYD forecast net profit for last year between 29 billion and 31 billion yuan ($4.04-4.32 billion), an...

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[Yellow is Okay]

Chinese EVs are becoming popular in Southeast Asia these days, as the reputation for poor quality of Chinese cars, especially petrol-cars, is fading away. It’s interesting to see how BYD is going to compete in Southeast Asia because auto/EV markets in this region are not that large compared to the US or European markets. For example, in Vietnam, we haven't even had public charging stations yet and the number of third party charging networks is still limited. So unless BYD is going to build its own charging stations like Vinfast has been doing in VN, I think BYD should focus more on other SEA markets.