Profit Doubles for EV Leader BYD

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【Summary】Chinese EV leader BYD expects its Q3 net profit to double, attributing the increase to strong sales numbers and efficient cost control. The company forecasts a net profit between 9.55 billion yuan ($1.31 billion) and 11.55 billion yuan, an increase of 67% to 102% from the previous year. Additionally, BYD's new energy vehicle sales reached a record high in Q3, with the company ranking first globally in terms of NEV sales.

FutureCar Staff Oct 17, 2023 9:21 AM PT

The Chinese electric vehicle company, BYD, is expecting a significant increase in its net profit for the third quarter. It predicts that its net profit could be up by as much as 102% compared to the same period last year. This positive forecast is attributed to strong sales numbers and efficient cost control.

BYD, based in Shenzhen, has projected a net profit between 9.55 billion yuan ($1.31 billion) and 11.55 billion yuan for the July to September period. This represents a year-on-year increase of 67% to 102%. Despite the intensifying competition in the automobile industry during this quarter, the company has managed to maintain profitability.

In a filing on Tuesday, BYD stated that its success can be attributed to its improving brand influence, expanding scale advantage, and strong industrial chain-wide cost control capability. These factors have demonstrated the company's resilience in the face of challenges.

The company also expects a significant rise in net profit for the nine months through September. It anticipates a year-on-year increase of 120% to 142%, with a projected net profit between 20.50 billion yuan and 22.50 billion yuan. This is a substantial improvement compared to the net profit of 9.31 billion yuan in the same period last year.

BYD's new energy vehicle (NEV) sales reached a record high in the third quarter, making it the top NEV seller globally. The company sold 824,001 NEVs during this period, representing a 53% increase compared to the previous year.

Last week, BYD announced a deal to sell 2,000 electric buses to Uzbekistan. It will also collaborate with the Tashkent Municipal government to promote the electrification of public transportation in the capital.

Source: Reuters with additional editing by Sean O'Meara

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