BYD On A Roll: Chinese EV company believes 2023 net profit to rise by 86.5 per cent compared to 2022

Chinese electric vehicle giant BYD anticipates a remarkable surge in net profit for 2023, projecting an increase of up to 86.5 per cent compared to the previous year. The forecasted net profit range is between 29 billion and 31 billion yuan or about $4.04-4.32 billion, reflecting substantial growth driven by robust sales and effective cost-cutting measures.

While the expected growth is significant, it represents a slower pace compared to BYD’s exceptional performance in 2022, when the company experienced a staggering 446 per cent net profit surge, reaching 16.6 billion yuan.

BYD attributed its impressive results to various factors, including the rapid expansion of overseas sales, the advantage of scale, and adept cost control within the supply chain. Despite intense competition in the electric vehicle industry, the company showcased substantial profitability improvement and demonstrated robust resilience.

In comparison to its major EV rival, Tesla, BYD’s projected net profit growth far surpasses. Tesla reported a 19.4 per cent increase in net profit for 2023, reaching $15 billion.

BYD achieved a significant milestone in the last quarter of 2023 by becoming the top EV maker in terms of sales, surpassing Tesla with the delivery of 526,409 vehicles, while Tesla handed over 484,507 cars during the same period. Throughout 2023, BYD sold approximately 3.02 million vehicles, marking an impressive 61.9 per cent increase.

Expanding its global footprint, BYD unveiled three battery EV models in Indonesia in January, signalling its ambition to secure a leading market position in Southeast Asia’s largest economy.

Beyond its automotive endeavours, BYD’s business portfolio extends to the sale of electronic components for smartphones, showcasing the company’s diversified approach in the rapidly evolving technology and electric vehicle sectors.

(With inputs from agencies)