By
Svetlana Soroka
April 18th, 2024
In comparison with other top brands, BYD has garnered a significant stride in the Chinese market, selling as many as 1.18 million cars in the year-to-date period.
Chinese electric car maker BYD Ord Shs A (SHE: 002594) has seen a massive share growth as investors are impressed with the company’s auto sales for the third quarter. As announced by the firm late on Monday, its net profit in the quarter that ended September 30 is projected to be between 5.5 billion yuan to 5.9 billion yuan ($764.5 million to $820 million).
This impressive figure, according to the company represents a growth of 333.6% to 365.11% when compared to the year-ago period.
“In the third quarter of 2022, despite the complex and severe economic situation, the spread of the pandemic, extreme high-temperature weather, high commodity prices, and other unfavorable factors, the new energy vehicle industry continued to accelerate its upward trend,” BYD said in a statement.
The BYD performance is one that is exceptional in the industry considering the many headwinds that the global economy is facing at the moment. The resurgence of COVID-19 in China and the Zero-COVID policy implemented by the government have further put strains on companies operating in the country.
Despite these challenges, as well as the limited access to key components of vehicles, particularly Lithium which is needed in batteries, BYD said the sales volume of its new energy car brands has “continued to reach record highs” and it has considerably boosted its market share in China.
As detailed by the company, the sales of its energy cars is “driving significant improvement in earnings and effectively relieving the pressure on earnings brought by the rising prices of upstream raw materials.”
BYD shares listed in Hong Kong recorded a 4.99% growth after rising as high as 5.6% over the past 24 hours. At the time of writing, the shares are trading at 273.67 Yuan.
How BYD Is Fairing among Other Electric Car Makers
BYD has grown in more ways than one over the past few years and with top investors like Warren Buffett, the company has enough reserve for research to debut its own unique products.
In comparison with other top brands, BYD has garnered a significant stride in the Chinese market, selling as many as 1.18 million cars in the year-to-date period. By comparison, American automaker Tesla Inc (NASDAQ: TSLA) has delivered just around 900,000 within the same time frame. It is worth mentioning that Tesla has a bigger global market share than BYD, thus making the latter’s performance a very applaudable one.
BYD has remained overly resilient in the face of the headwinds that have been recorded thus far. Other local auto brands like Xpeng Inc (NYSE: XPEV) have had it tough this year and have reported weak delivery guidance for the third quarter.