Chinese electric vehicle company BYD, which is making strides with the world’s No. 1 electric vehicle sales, saw its net profit more than five times increase last year thanks to record electric vehicle sales.
According to Bloomberg News on the 29th, BYD announced that its net profit last year was 16.6 billion yuan, up 446% from the previous year.
It met the preliminary earnings estimate of 16 billion to 17 billion yuan released on January 30 and exceeded Bloomberg’s analyst forecast of 15.98 billion yuan.
BYD said it sold 1.86 million battery-based pure electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) in the global market last year, more than its combined sales over the previous four years, half of which were pure electric vehicles.
As a result, BYD market share in China’s new energy vehicle (NEV) market has also increased to about 30%.
Tesla, which is fiercely competing with BYD in the Chinese market, has sold 1.31 million units worldwide.
According to SNE Research, an energy market research firm, BYD increased delivery of electric vehicles, including pure electric vehicles and plug-in hybrid vehicles, by 205% last year, beating Tesla to become the world’s No.
Bloomberg predicted that BYD is expected to see further growth in its performance this year through the launch of new high-end electric vehicles, but margins are likely to be pressured by price competition triggered by Tesla.
BYD stopped producing internal combustion locomotives last year.
Meanwhile, BYD is strengthening its targeting of Norway, Denmark, Britain, Thailand and Australia, but has no plans to enter the U.S. passenger car market, where Tesla is holding out, Viyadi Chairman Wang Chuan-fu said.
Chairman Wang Chuan-fu made the remarks at the announcement of his performance, saying that China’s NEV market has entered a full-scale expansion phase.
He added that since there are no plans to enter the U.S. immediately, there will be no impact on the company due to the U.S. Inflation Reduction Act.