Chinese EV maker BYD seems to be on a roll after reporting its half-year financial results. The shares of the company jumped as a response to the company’s 204.68% increase in profit in H1, 2023. BYD reported a net profit of 10.95 billion yuan ($1.50 billion) from its H1 2022 net profit of 3.6 billion yuan ($494.13 million). Shares of the Chinese carmaker responded positively to the report with a 5% jump in the Chinese stock exchange.
The highly impressive H1 2023 performance of BYD was mainly driven by record deliveries and a fast-expanding marketing architecture. BYD shares listed in Hong Kong rose 5.6% while stocks in Shenzhen appreciated by 4.75%. In a stock filing, BYD attributed its impressive performance to rapid growth in the new energy vehicle business. BYD’s revenue in the first half of 2023 rose by 72.72% from H1, 2022. The company’s gross margin in the first half of this year was 18% which is as impressive as it can get.
BYD retains the record as China’s top-selling electric vehicle brand and it posted its best-ever quarterly sales numbers in Q2, 2023. Sales of BYD passenger EVs in the second quarter were 700,244 units (98% increase YOY). BYD’s sales numbers were higher than Tesla which was 466,140 vehicles sold in Q2, 2023. This further cements China’s position as the largest auto market globally in terms of sales and production. It also puts it as the largest EV market globally. BYD continues to flourish in the mass EV market while Tesla’s target is the luxury segment. The price differential will continue to drive sales for BYD as it expands to more overseas markets.
BYD retains the top spot in China’s EV market but it has some strong competitors like Nio and Xpeng, among others. The EV revolution is already ongoing in China and BYD maintains a positive outlook for the remaining part of the year.
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