Record profit

Chinese car manufacturer BYD is becoming ever more powerful

(Bild: AFP or licensors)

BYD, now the world's largest e-car manufacturer from China, posted record profits last year. The Shenzhen-based company reported an 81 percent explosion in net profit on Tuesday.

In figures: 30.04 billion yuan (just under 4 billion euros). However, the increase in profit fell steadily over the quarters of the previous year - to just 15 percent in the last quarter. Turnover in 2023 amounted to 602.3 billion yuan - 42% above the previous year's figure.

Batteries for the established
BYD was founded in 1995 and initially produced batteries before entering car production in 2003. Today, the company specializes in hybrid and electric cars. Numerous Western car manufacturers also purchase batteries for their electric cars from BYD, including BMW, Mercedes, Audi, Tesla, Toyota and Ford.

In the fourth quarter of last year, the Chinese company replaced its US competitor Tesla as the largest electric car manufacturer. Tesla had increased its deliveries in the three-month period by eleven percent year-on-year to 484,507 vehicles. Nevertheless, the Chinese outperformed billionaire Elon Musk's company with a whopping 526,409 electric cars delivered. BYD also sold more than 400,000 plug-in hybrids in the fourth quarter.

BYD Seal

(Bild: BYD)

BYD engages in a discount battle
The revised Seal electric saloon, which was launched on the market on Monday, costs 5.3 percent less than its predecessor. It is the 16th vehicle since the beginning of the year for which BYD has reduced the price following a facelift.

This is BYD's response to the fact that the market for electric cars in China is no longer growing nearly as strongly. Last year, sales figures only increased by 21 percent - down from 74 percent in 2022. Competitors such as Tesla, Geely, GAC Aion, Leapmotor and Xpeng are engaging in the price war with BYD, but are not offering anywhere near as high discounts.

John Zeng, a market researcher specializing in China at GlobalData in London, said that BYD could make up for the price reductions with savings and increasing exports, which are subject to higher prices. Last year, 240,000 exported vehicles accounted for eight percent of production, and Zeng expects 300,000 to 400,000 export cars in 2024.