BYD made a significant financial announcement on Monday evening, stating that its net profit for the previous year is anticipated to be in the range of 29 billion yuan (equivalent to US$4.1 billion) to 31 billion yuan. This reflects a substantial increase, ranging from 74.5% to 86.5%, compared to the figures reported in 2022.
Notably, BYD did not disclose estimated revenue as part of this announcement.
While BYD has demonstrated significant profitability, it is noteworthy that its financial performance still lags behind its competitor, Tesla.
Due to the larger profit margins enjoyed by the American giant, Tesla reported a net income of US$15 billion for the year 2023, indicating a notable 19.4% increase compared to the previous year.
The majority of BYD’s car sales were concentrated in mainland China, where they successfully sold 242,765 units. A smaller fraction, comprising 8% of the total deliveries, was exported to various overseas markets.
In a research note on Tuesday, SDIC Securities highlighted that BYD’s profit margin per vehicle decreased to approximately $1,400, a decline of $220 compared to the previous year. This reduction was attributed to the discounts provided to buyers, aimed at sustaining growth momentum in sales. Notably, BYD implemented price cuts ranging from $780 to $1,560 for cars in its Dynasty and Ocean series during the final two months of 2023.
In the fourth quarter, BYD significantly allocated resources to sales and marketing, including the disbursement of cash rewards totaling $100 per vehicle to stores achieving their sales targets, as indicated in SDIC’s note. This reward initiative had a noticeable impact on BYD’s profit margin. Over time, BYD has gained recognition for its electric vehicles (EVs) priced under $30,000, making them approximately 30% more affordable than premium models from competitors like Tesla.
BYD also Dominates Singapore’s EV Market
BYD, the Chinese automaker, has outpaced its American counterpart, Tesla, in electric vehicle (EV) registrations in Singapore for the past year. This achievement mirrors BYD’s global success in surpassing its Western rival to become the leading EV seller worldwide.And now, BYD surpasses Tesla to become the leading electric vehicle (EV) seller in Singapore.
