China’s largest electric vehicle company, BYD, achieved record operating profits last year.
BYD’s revenue last year was 602.315 billion yuan (approximately $83 billion), a 42.04% increase compared to the same period, and its operating profit was 30.041 billion yuan (approximately $4.1 billion), an 80.7% increase compared to the same period last year.
BYD attributed its increased performance to a surge in sales of electric vehicles and hybrids due to the demand for eco-friendly cars. Last year, BYD sold 3.0244 million eco-friendly vehicles, a 61.9% increase compared to the same period. This is the first time BYD has surpassed 3 million in annual sales of eco-friendly cars.
The South China Morning Post (SCMP) in Hong Kong pointed out that BYD’s profitability is falling as price competition unfolds in the global electric vehicle market. Phate Zhang, an analyst of CnEVPost, an international electric vehicle data provider, told SCMP that this results from “large-scale sales promotions and dealer incentives.”
BYD is responding with electric vehicles that have enhanced price competitiveness. It is expanding sales of the “Seagull,” a compact car priced at around $10,000. BYD has five models priced under 100,000 yuan (approximately $14,000).
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