BYD electric car sales jump, but profits nearly halve as EV price war bites

BYD has been one of the fastest-growing car companies in recent history, with sales hitting 3 million within a couple of years. Its latest results shows continued growth in EV sales as it jostles with Tesla for top global billing, but its profits have slumped because of the ongoing EV price war. 

New energy vehicle (NEV) sales reached 313,245 in April, according to the latest data, with full battery electric vehicles (BEVs) making up 134,465 units, down 3.9 per cent from March but up 28 per cent from a year earlier, according to cnevpost.

The company also recorded a big uptick in its plug-in hybrids (PHEVs) which were 177,583 sales, a rise of 9.8 per cent from March and 69 per cent from a year earlier.

The company also exported a record 41,011 vehicles in April, the highest on record, and 176 per cent above a year ago, and comes as BYD seeks new markets to compensate for an anticipated softening in new car sales in China.

However, the recent growth has come at  a cost, with profits down 47 per cent in the first quarter, following revenue falls, profit cuts and staff shedding at Tesla, its biggest global competitor.

BYD’s exported sales also include Australia, which was one of the company’s early western markets since it unveiled the Atto 3 in Sydney back in February 2022. BYD has sold over 20,000 EVs in the Australian market and has aggressive growth plans. 

Part of this growth involves launching multiple new models and increasing its retail footprint from 35 to over 70 locations by the end of 2024.

Sales of the Atto 3 electric SUV also continue to remain strong, partially due to demonstrator offers from the brand, shaving up to $8,000 off the price of an Atto 3 extended variant until stock runs out.

The first 4 months have seen BYD sell 939,508 vehicles globally which is up 23% compared compared to the same time last year.

This growth is likely to continue in the coming months as the brand aims to hit a target of over 4 million sales in 2024. With multiple new models on the way and existing models heading to more international markets, this target is looking quite promising.