BEIJING: “Chinese EV Giant BYD Reports 24.4% Profit Increase”, Leading Chinese automaker BYD posted on Wednesday (Aug 28) a 24.4 per cent rise in net profit for the first half of 2024, boosted by continuing strong demand for electric cars in its home and overseas markets.
The company posted a net profit of US$1.91 billion in the January-June period, up from US$1.54 billion in the same period last year, according to results published at the Hong Kong Stock Exchange where BYD is listed.
The firm said sales during the period stood at US$42.3 billion, up 15.8 per cent year-on-year. The Shenzhen-based company – which adopts the English slogan “Build Your Dreams” – is the most prominent EV manufacturer in China, the world’s largest automotive market.
Leaders in Beijing are aiming for car sales to be mainly made up of electric and hybrid models by 2035.
In July, such vehicles accounted for more than half of all domestic sales, passing the threshold for the first time, according to the Chinese Association of Automobile Manufacturers.
Generous government subsidies initially helped sales take off – but the policies were phased out in late 2022 and the market now appears to be reaching maturity.
BYD has “effectively dealt with challenges brought by intensified industrial competition”, it said in the filing. Earlier this month, Brussels released a draft plan to impose tariffs of up to 36.3 per cent on Chinese EVs – a measure that will become permanent in October unless a deal is reached with Beijing.
BYD has nonetheless been ramping up globalisation efforts, with plans to open factories in Hungary and Turkey. Originally specialising in the design and production of batteries, BYD diversified into the automotive industry in 2003.
