Shenzhen-based EV giant, BYD has reported its profits to have risen five-fold in Q1. The firm has consolidated its leadership in China’s domestic electric vehicle market and has emerged as a tough competitor to other EV global giants in the domestic market.
It said in the stock market filing that its net profit was 4.13 billion yuan ($596.56 million) in the first quarter of 2023, up 410.9 percent from 808.41 million yuan one year earlier.
As per data available from the China Association of Automobile Manufacturers, it is reported that the company outsold rival Volkswagen in the first quarter of this year in China, selling 552,076 new EVs, a 92.81 percent rise year-on-year(YoY).
The tremendous success is mainly attributed to its Dynasty and Ocean series of plug-in hybrids and pure electric cars. It is reported that the company also sold more than 1.86 million vehicles in 2022, mostly in China.
BYD also reported an 11-fold rise in profit during the fourth quarter of last year,further asserting its lead in the country’s competitive electric vehicle (EV) sector.
BYD also joined many other Chinese brands in providing competitive prices due to the price war started by Tesla. It offered discounts for its Song Plus and Seal EVs in March. The cut in EV prices have affected the automakers’ earnings, with Tesla reporting a 24% plunge in first-quarter net income.
It may be recalled that at the Shanghai auto-show recently, BYD unveiled its Seagull electric hatchback, that costs only $11,000, around half the cost of the next cheapest new EV.