Chinese electric vehicle (EV) titan BYD (002594.SZ) anticipates a significant net profit increase in 2023, predicting growth of up to 86.5% over the previous year.
The company attributes this to robust sales and effective cost reductions. A filing with the Shenzhen Stock Exchange revealed BYD’s projected net profit in 2023 between 29 and 31 billion yuan ($4.04-4.32 billion), marking a 74.46-86.49% rise from the previous year. However, this growth is slower than BYD’s 446% net profit surge in 2022, reaching 16.6 billion yuan.
BYD credits its success to expanding overseas sales; supply chain cost control and scale advantage. In contrast, Tesla, BYD’s main competitor, reported a 19.4% net profit increase in 2023, reaching $15 billion.
In Q4 2023, BYD outperformed Tesla in EV sales, delivering 526,409 vehicles. BYD sold approximately 3.02 million vehicles in 2023, up 61.9%.
The company also launched three battery EV models in Indonesia, targeting a leading position in Southeast Asia’s largest economy. Beyond vehicles, BYD also operates in electronic components for smartphones. The current exchange rate is $1 = 7.1780 Chinese yuan renminbi.
