BYD, China’s top electric vehicle (EV) manufacturer, announced a 24.4% rise in net profit for the first half of 2024, driven by robust demand for its electric vehicles both domestically and internationally. The company reported a net profit of $1.91 billion for the January-June period, up from $1.54 billion during the same period last year, according to financial results disclosed at the Hong Kong Stock Exchange. BYD’s revenue for the period reached $42.3 billion, marking a 15.8% increase year-on-year.
Shenzhen-based BYD, whose English slogan is “Build Your Dreams,” has established itself as a leading player in China, the world’s largest automotive market. The Chinese government aims for electric and hybrid vehicles to dominate car sales by 2035, with such models surpassing half of all domestic sales for the first time in July 2024, according to the Chinese Association of Automobile Manufacturers.
Initially fueled by generous government subsidies, the EV market in China has matured as these incentives were phased out in late 2022. As a result, local EV companies, including BYD, have engaged in intense price competition to stay ahead, which has put pressure on their profit margins. Despite these challenges, BYD stated it has “effectively managed the challenges posed by intensified industry competition.”
In recent years, BYD and other Chinese EV manufacturers have focused on expanding overseas, even as Western countries express concerns about market saturation with low-priced imports. The European Union has accused China of using subsidies to give its automakers an unfair advantage abroad, potentially distorting competition and impacting European carmakers. Earlier this month, the EU proposed tariffs of up to 36.3% on Chinese EVs, which could become permanent by October unless an agreement with Beijing is reached.
Meanwhile, the United States announced in May that it would raise customs duties on Chinese EVs to 100%, and Canada followed suit with a similar tariff, citing concerns over environmental and labor standards.
Despite these international challenges, BYD continues to push forward with its global expansion plans, including new factory openings in Hungary and Turkey. Initially known for its expertise in battery design and production, BYD expanded into the automotive sector in 2003 and has since become a major player in the global EV market.
