BANGKOK (AP) – Chinese electric vehicle maker BYD set a remarkable milestone by achieving 777.1 billion yuan (approximately $107 billion) in revenue last year, marking a 40% increase in sales of both battery electric and hybrid vehicles. This significant surge in revenue reflects BYD's strong position in the rapidly evolving automotive market.
The report released on Monday coincided with the launch of BYD's Qin L EV sedan earlier this week. This mid-sized model is comparable to Tesla's Model 3 but is priced at just over half, making it an attractive option for consumers looking for cost-effective electric vehicles.
In terms of profitability, BYD reported a net profit of about 40 billion yuan (around $5.6 billion) for the last year, which represents a 34% increase from the previous year. Despite these impressive financial results, BYD's Hong Kong-traded shares saw a decline of 3.2% on Tuesday, despite the positive earnings announcement.
A substantial portion of BYD's revenue, nearly 80%, was generated from its automotive businesses. The company sold approximately 4.3 million pure electric and hybrid vehicles in the past year, demonstrating its significant impact on the electric vehicle market. Additionally, nearly 29% of BYD's sales occurred in markets outside Greater China, including Hong Kong and Taiwan, reflecting a slight increase from 27% the prior year.
Furthermore, BYD has been actively expanding its exports, although it has yet to venture into the U.S. market. This hesitance is compounded by the fact that former U.S. President Donald Trump had proposed raising tariffs on car imports. Currently, BYD faces a challenging situation in the European Union, as there is a 17% tariff on the export of electric vehicles to this region.
In line with its growth strategy, BYD announced the rollout of a super-fast EV charging system last week, claiming it to be nearly as quick as traditional gas station refueling. This innovation is expected to enhance the appeal of their electric vehicles, making them a more convenient choice for consumers.
As BYD continues to strengthen its foothold in the global electric vehicle market, its focus on expanding its automobile sales and innovative technology will be crucial for navigating the competitive landscape. The company's success in increasing both revenue and profit amidst a fluctuating stock market highlights its potential for growth in the coming years. With its initiatives to broaden its market reach and the introduction of new models, BYD is poised to remain a key player in the electric vehicle sector.
