BYD, China’s largest electric car maker and one of the world’s largest by volume, announced record net profit thanks to sales that do not stop growing.
From the excellent numbers of its third quarter of the fiscal year, the shares gained more than 5 percent on the stock market.
The big financial report is due to increasingly strong sales thanks to what the Chinese brand calls a “perfect combination of products”.
According to BYD, net profit for the quarter between July and September was between 765 and 825 million dollars, an increase of the order of 350 percent compared to the same period in 2021.
In that context, BYD shares on the Hong Kong stock market rose 4.2 percent and on the Shenzhen stock market, 5.6 percent.
Tesla is no longer a rival to China’s BYD
Thanks to the important sales of BYD, the Chinese brand extended its advantage over Tesla in the largest car market on the planet.
BYD’s marketing strategy was based on the elimination of gasoline vehicles from the 2022 product mix. This way, it was able to focus on electric cars, and it was not wrong.
The Chinese brand capitalized on a wide variety of incentives for the manufacture and sale of electric cars offered by the Chinese central government and also provincial governments.
On the other hand, BYD, a company in which Warren Buffett’s Berkshire Hathaway owns 19 percent, markedly reduced the cost of manufacturing per vehicle, which prevented it from having to increase retail prices.
Likewise, according to the brand, it launched a much improved product mix that was led by its luxury sedan called “Han”.
With the stock value rising on Tuesday, October 18, the Chinese automaker achieved a market capitalization of around $93 billion, close to the market values of General Motors and Ford Motor combined. Awesome.
BYD’s combined sales of its pure electric vehicles and hybrids rose 255 percent in the first nine months of 2022 to 1.3 million units, outpacing the growth in segment sales by 115 percent. electric vehicles in China.
Namely, the sale of electric cars grew remarkably, but those of BYD doubled that increase.
By comparison, Tesla sold just over 318,000 electric vehicles in China between January and September,
Among domestic electric vehicle rivals, XPeng and Nio both made losses in the quarter, selling 98,500 and 31,600, respectively.
BYD’s strategy was also based on the production of batteries and some microchips within its own factories.
The China Association of Automobile Manufacturers estimates that the sale of electric cars in 2022 in the Asian giant will increase by 50 percent, to 5.5 million units.
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