BYD says 2022 income rose to $2.5bn

30 January 2023 - 16:32 By Danny Lee
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BYD sold 1.86-million new EVs in 2022, more than the previous four years combined.
BYD sold 1.86-million new EVs in 2022, more than the previous four years combined.
Image: Chesnot/Getty Images

Chinese electric-vehicle giant BYD said net income reached 17bn yuan (R43.4bn) last year, an increase of 458% from 2021, according to a preliminary filing to the Shenzhen Stock Exchange on Monday.

That’s much higher than predicted by analysts, who on average forecast net income of 13.2bn yuan. They expect revenue for the Warren Buffett-backed company to almost double to 400bn yuan. BYD said revenue was likely exceeded 420bn yuan.

The company attributed the strong financial performance to the surge in new energy vehicle sales.  

BYD sold 1.86-million new EVs in 2022, more than the previous four years combined. The company avoided some of the supply chain and Covid-19 disruptions that hurt its rivals, thanks to its ability to produce key components, including batteries and semiconductors.

Image: Bloomberg

Sales are expected to surge this year, with a foray into making and selling luxury cars, fuelling earnings growth. Its main rival in sales volume — Tesla — said it could produce two-million cars this year.

Elon Musk’s Tesla is leading a price war, slashing prices in many markets where it operates by double digits, including in China, the world’s biggest market for EV sales. That’s prompted some brands to follow with their own cuts to maintain sales momentum.

BYD’s Hong Kong-listed shares dipped 2.7% on Monday, trimming this year’s gains to about 24%.

More stories like this are available on bloomberg.com


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