The Chinese electric vehicle giant doubled its profits

Electric vehicle company BYD recorded an 80% increase in net profit in 2023 compared to the previous year, despite increasingly fierce competition.

On March 26, BYD announced that last year's net profit reached 30 billion yuan (4.2 billion USD), nearly doubling in 2022.

BYD makes big profits despite having to operate in the context of a "complicated external environment", the company said. That is high global inflation and slowing growth in major economies.

In the fourth quarter of 2023, BYD also surpassed Tesla in the number of electric cars sold globally. Accordingly, they sold more than 525,400 cars, slightly higher than Tesla with 484,500 cars.

BYD's Seal vehicle at the exhibition in Japan in October 2023. Photo: Reuters

Overall, in 2023, BYD sold a record 3.02 million cars globally, an increase of 62% compared to 2022. This number includes 1.44 million hybrid electric-gasoline cars, a type Tesla does not produce. In terms of electric cars alone, the American automaker still sells more than BYD, with 1.8 million units.

Compared to Tesla, BYD's car prices are lower. This helps them attract many buyers. BYD's cheapest car sold in China is more than 10,000 USD. Meanwhile, Model 3 - Tesla's cheapest car model, costs 39,000 USD.

However, fierce competition and the price war last year affected the profit margins of many Chinese car manufacturers, including BYD. The latest data from the Passenger Vehicle Association shows that the country's car industry recorded an average profit margin of 5% last year, down 1.1% and 07% compared to 2021-2022.

However, the price war still shows no signs of cooling down. Earlier this month, BYD reduced the starting price of the cheapest car model - Seagull by 5%, to 69,800 yuan (9,670 USD). Other Chinese automakers have also announced price cuts in recent weeks, including Geely, Chery and XPeng Motors.

Ha Thu (according to CNN, Reuters)

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