On August 28, BYD unveiled its 2023 interim performance report, showcasing a remarkable achievement in the year’s first half. According to the report, BYD reported an operating income of USD 35.858 billion, marking a substantial year-on-year increase of 59.56%. Additionally, the net profit attributable to the parent company stood at USD 1.51 billion, reflecting an impressive year-on-year surge of 181.47%. These figures underscore BYD’s robust performance and its sustained high-speed growth trajectory.
During the first half of 2023, BYD achieved another significant milestone by selling 1.25 million vehicles, marking a remarkable year-on-year increase of 95.3%. In H1 of 2023, BYD’s gross profit margin will be 18.3%, and its net profit margin will be 4.4%.
The auto industry in China experienced a slowdown in production and sales during the first half of this year. However, electric vehicles (EVs) continued to demonstrate substantial growth. Data from the China Association of Automobile Manufacturers reveals that from January to July 2023, the production and sales of new energy vehicles (NEVs), which include electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), reached 4.591 million and 4.526 million units, respectively. This represents a year-on-year increase of 40% and 41.7%, showcasing the robust growth of NEVs in China.
BYD’s performance in this context stands out significantly. During the same period, BYD recorded sales of 1.5178 million new energy vehicles, marking a staggering year-on-year increase of 88.81%. Notably, PHEVs accounted for approximately 757,700 units of these sales, representing a year-on-year increase of 91.4%.
This impressive growth can be attributed to BYD’s relentless investment in core technology. In the first half of 2023, BYD allocated a substantial USD 1.907 billion to research and development (R&D), reflecting a year-on-year increase of 135.62%. This R&D investment significantly exceeded the company’s net profit for the same period and surpassed Tesla’s R&D expenses during the same timeframe.
Focusing on automobiles specifically, BYD’s automobile and related spare parts business contributed to 80.28% of its overall revenue. Furthermore, this segment boasted a gross profit margin of 20.7%, which exceeded that of Tesla during the same period. On average, BYD submitted 19 patent applications daily and secured 15 patent authorizations, a testament to its commitment to innovation.
Leveraging its technical prowess, BYD has continued to diversify its product lineup. In August, the company introduced FCB, a brand catering to the mid-to-high-end market segment. The inaugural model, the Bao 5, is positioned as a high-performance hybrid SUV, addressing the individual needs of consumers. BYD now boasts a multi-brand portfolio that includes BYD, Denza, Yangwang, and FCB, offering a wide range of choices from mass-market to luxury vehicles, fully catering to diverse consumer preferences.
BYD has also been exploring international markets as a new avenue for growth. From January to July 2023, BYD achieved overseas sales of more than 92,400 vehicles, surpassing the 55,900 cars sold overseas in 2022. The company’s passenger vehicles are now in 54 countries and regions worldwide, including Japan, Germany, Australia, Brazil, and the United Arab Emirates. In July, BYD announced plans to construct three new factories in Brazil, further accelerating its global expansion with the advantage of a comprehensive industrial chain.
An additional noteworthy achievement came on August 9 when BYD celebrated the production of its five millionth new energy vehicle, marking a significant milestone in the company’s history and establishing BYD as the world’s first automaker to reach this feat.
In the latest 2023 Fortune Global 500 list, BYD secured the 212th position, a remarkable jump of 224 places from the previous year.