The benefits of BYD Co. rose fivefold last year after the Chinese automaker sold a record number of electric vehicles and intensified its battle with Tesla Inc. for market share.
Net income rose 446 percent to 16.6 billion yuan ($2.4 billion), the company said on Tuesday, in line with the preliminary profit of 16 billion to 17 billion yuan it reported on Jan. 30. Analysts had expected 15.98 billion yuan, according to data compiled by Bloomberg. .
BYD sold 1.86 million electric and plug-in hybrids in 2022, more than the previous four years combined and accounting for about 30% of all new energy vehicle sales in China. Half of them were battery-only electric vehicles. In comparison, Tesla delivered 1.31 million electric vehicles. BYD stopped producing cars powered entirely by fossil fuels last year.
New launches of luxury electric vehicles will help BYD expand its lineup this year and should help drive further earnings growth. But margins are likely to be squeezed by an ongoing price war in China that was sparked by Tesla cutting back on its locally manufactured models.
Warren Buffett-backed BYD is stepping up its push overseas, including in Norway, Denmark, the UK, Thailand and Australia.
BYD shares rose 1.5 percent in Hong Kong ahead of Tuesday’s results. They have fallen nearly 20% since early February, when the price war intensified and data showed Chinese car sales fell in January as shopping slowed during the New Year holidays. New Lunar
The company’s founder, Wang Chuanfu, will host a post-earnings event with analysts and media in Hong Kong on Wednesday morning.
