Deliveries are increasing
Car manufacturer BYD earns more despite the discount battle
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BYD is growing despite tough competition in its home market. In the second quarter, profits increased by a third. Revenues increase by a fifth. The company is using the money to drive its expansion.
Amid a discount battle on the domestic market, Chinese electric car maker BYD earned more in the spring. Despite its aggressive pricing policy, the group's annual profit climbed by a third to 9.1 billion yuan (1.15 billion euros), as BYD announced. This is the biggest jump in profits since the end of 2023. Sales climbed by a quarter to 176.2 billion yuan from April to June.
BYD was able to massively expand its market share in China in the second quarter to the end of June and leave Volkswagen far behind as the leading car manufacturer. Since then, BYD has been able to hold its own despite a raging price war. The car manufacturer relies on a strategy of vertical integration and uses key components such as batteries from its own production.
With the goal of increasing annual sales by 20 percent, BYD is offering deep discounts on its bestselling Dynasty and Ocean series. In this way, the group wants to secure its pioneering role with a share of more than a third in cars with alternative drives (NEV) in China. In addition to purely electric cars, the segment also includes those with hybrid drives.
BYD delivered 426,039 fully electric vehicles in the second quarter, an increase of 21 percent compared to the previous year. Rival Tesla sold 443,956 units. In the fourth quarter, BYD briefly overtook Tesla in terms of deliveries. According to the Federal Motor Transport Authority, BYD delivered 1,432 vehicles to customers in Germany. At the beginning of the year, 4,317 of the manufacturer's vehicles were registered in this country.
BYD and other large electric car manufacturers from China are currently expanding rapidly abroad in the face of fierce price competition at home and rising tariffs. In Europe, BYD is planning a plant in Hungary, among other places.
