Chinese electric car maker BYD reports 33% profit rise Reuters

BEIJING (Reuters) – Chinese electric vehicle maker BYD ( SZ: ) reported a 32.8 percent rise in second-quarter net profit on Wednesday, the fastest rise since the end of 2023, despite weakened spending on high-end items price on the world’s largest automobile market. .

Net profit reached 9.1 billion yuan ($1.3 billion) in the April-June quarter, while revenue rose 25.9 percent from a year earlier to 176.2 billion yuan, it said in a stock market statement.

For the first half of the year, net profit rose 24.4% to 13.6 billion yuan.

BYD has taken a significant lead in the electric and plug-in hybrid vehicle sector, capitalizing on its vertical integration strategy by using key components such as batteries produced by the company.

BYD surpassed the combined sales of Volkswagen’s ( ETR: ) two joint ventures in China by 14.5% in the first seven months. It is expected to dethrone Tesla (NASDAQ: ) as the largest EV vendor this year, with a 17.7 percent share of the global market, compared to Tesla’s 17.2 percent, according to Counterpoint Research estimates.

It has offered aggressive discounts on its best-selling Dynasty and Ocean series of electric vehicles to secure its leading position with more than a third share of China’s new energy vehicle market.

BYD has also expanded its international presence, such as in Europe and Mexico, where it plans to set up production. The company faces an additional 17% tariff for exporting electric vehicles from China to European Union countries.

Overseas deliveries accounted for 11.9 percent of BYD’s total car sales in the first seven months of the year, nearly double the number for the same period last year, according to Reuters calculations based on BYD’s monthly data.

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