2024-03-27 02:38:03
International
Entered2024.03.27 11:38 Modified2024.03.27 13:08
BYD, the world’s No. 1 electric vehicle, is racing… Net profit increased by 80% last year
Net profit of 30 billion yuan in first year, surpassing Tesla
Almost doubled compared to the previous yearSales volume increased by 62% to 3.02 million units.
Tesla only sells 1.8 million unitsWin with price competitiveness
Recently lowered the entry-level price by 5%
Almost 1/3 the price of Tesla
Amid fierce competition in the global electric vehicle market, Chinese electric vehicle company BYD continues to race. Foreign media such as CNN reported on the 26th (local time) that BYD, which beat Tesla, the world’s largest electric vehicle company, in the fourth quarter of last year to take first place in global sales, increased its profits by 80% last year.
On this day, BYD announced that its net profit last year was 30 billion yuan, almost double the previous year (16.6 billion yuan). BYD said it achieved these results despite the complex external environment, citing high levels of inflation worldwide and slowing growth in major economies. BYD, supported by ‘investment genius’ Warren Buffett, showed remarkable growth by surpassing Tesla in the fourth quarter of last year and taking the top spot in global electric vehicle sales. BYD sold 525,409 electric vehicles during this period, surpassing Tesla (484,507,000 units).
BYD’s total sales last year were approximately 3.02 million units. It increased by 62% compared to the previous year. This includes 1.44 million plug-in hybrid vehicles and 1.57 million pure electric vehicles that Tesla does not sell. Tesla delivered 1.8 million vehicles last year.
BYD is attracting consumers with its overwhelming price competitiveness compared to Tesla. BYD’s entry-level model costs a little over $10,000, while Tesla’s cheapest Model 3 costs almost $39,000. However, as competition in the electric vehicle market has intensified and the price reduction war has intensified, it is having a negative impact on the profitability of Chinese automobile manufacturers, including BYD. According to recent data from the China Passenger Car Association, China’s automobile industry is gradually slowing, with profit margins of 6.1% in 2021, 5.7% in 2022, and 5% in 2023.
Despite the sharp decline in margins, Chinese companies’ low-price offensive is fierce. Earlier this month, BYD lowered the price of its cheapest electric car model, the Seagull hatchback, by 5% to 69,800 yuan (about 12.94 million won). Other Chinese manufacturers, including Geely Cherry Xfeng, have also announced price cuts in the past few weeks.
Reporter Cho Young-seon
1711516334
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