BYD has emerged as a dominant force in the global electric vehicle industry, achieving remarkable financial growth and market expansion.
BYD reported a record-breaking net profit of 15 billion yuan ($2.1 billion) in the fourth quarter of 2024, marking a 73.1 percent increase from the previous year. This surge in profitability was driven by a combination of aggressive pricing strategies and significantly higher sales compared to its competitors.
Fourth-quarter revenue climbed 52.7 percent to 274.9 billion yuan, reflecting BYD’s strong market position and ability to capitalize on the increasing demand for electric vehicles.
For the entire year, BYD’s profit rose by 34 percent to reach an all-time high of 40.3 billion yuan, while total revenue saw a 29 percent increase, underscoring the company’s sustained momentum in the EV market.
BYD made history in 2024 by surpassing Volkswagen to become China’s top-selling car brand, delivering a record 4.25 million vehicles, Reuters news report said. This milestone highlights BYD’s dominance in the world’s largest auto market, where it has aggressively pursued a strategy of launching cost-effective EV models. By doing so, BYD has intensified an ongoing price war that has gripped the Chinese automotive industry for the past two years, challenging both domestic and international competitors.
BYD has been at the forefront of innovation, unveiling a groundbreaking super-charging EV technology platform. The company also announced plans to integrate smart driving features into most of its vehicle lineup at no additional cost, further enhancing its value proposition to consumers. This move is expected to reinforce BYD’s competitive edge and attract more buyers who are seeking advanced yet affordable electric vehicles. The company’s focus on innovation and customer-centric offerings has played a crucial role in strengthening its market position.
A significant portion of BYD’s revenue comes from the sale of automobiles and related products, which accounted for 79.4 percent of its total operating revenue. The gross profit margin for this segment improved to 22.3 percent, representing a 1.3 percentage point increase from the previous year. This steady rise in profitability is a testament to BYD’s ability to manage costs effectively while scaling up its production and sales.
The automaker’s financial strength was further reinforced by a recent primary share sale that raised $5.59 billion. The funds will be allocated towards research and development, as well as overseas expansion, ensuring that BYD continues to advance its technological capabilities and global footprint.
BYD has been actively expanding its presence beyond China, with overseas shipments rising by an impressive 71.9 percent in 2024. These exports now account for 10 percent of the company’s total vehicle sales, highlighting the growing international demand for its electric cars.
The company is also exploring opportunities to establish a stronger foothold in Europe, with Germany being considered as the potential location for its third manufacturing plant on the continent. This strategic move aligns with BYD’s long-term vision of becoming a leading global EV manufacturer, leveraging its cost advantage, technological expertise, and production efficiency to compete on an international scale.
GreentechLead.com News Desk