BYD’s Net Profit in 2023 Q1 Surpasses $596M, YoY Increase of 410.89%

BYD’s net profit in Q1 increased fourfold owing to the growth in car sales. On April 27, BYD released its Q1 financial report. The company achieved operating income of 120.173 billion yuan ($17.3 billion), a year-on-year increase of 79.83%, and a net profit of 4.13 billion yuan ($596 million), a year-on-year increase of 410.89%. The gross profit margin reached 17.86%, an increase of 5.46% compared with the same period last year.

From January to March 2023, BYD sold more than 552,000 new energy vehicles (NEVs), a year-on-year increase of 92.81%. Its market share in China’s NEV market increased significantly from last year’s same period from 24.67% to 37.75%.

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In addition, business outside of China has become a new growth point for BYD as it accelerates its expansion into other markets by avoiding countries such as America, South Korea, Germany, Japan, and France where local brands are dominant and focusing on regions with fewer domestic brands such as Southeast Asia, Europe and South America. By transporting components to those markets, the firm localizes stamping, painting, welding, and assembly processes.

Li Yunfei, General Manager of BYD’s Brand and PR Department, revealed at the Shanghai Auto Show that their sales volume outside of China had not surpassed 60,000 units until last year. However, by the end of March this year, they had already sold almost 40,000 units with impressive sales in Thailand and Israel.

Data from the China Association of Automobile Manufacturers (CAAM) shows that in the first quarter of this year, automobile production and sales totaled approximately 6.21 million units and 6.076 million units respectively, representing a decrease of 4.3% and 6.7% compared to the same period last year. However, during this time frame, new energy vehicle (NEV) production and sales reached about 1.65 million units and 1.586 million units respectively – an increase of 27.7% and 26.2%. NEVs now account for a market share of up to 26.1%.