BYD, the global leader in electric and plug-in hybrid vehicle sales, reported revenues of ¥201 billion (approximately €26 billion) in the third quarter, surpassing the $25.2 billion (€23.2 billion) reported by Tesla in the same period.
This growth for BYD was supported by a record sales result of 1.1 million vehicles between July and September, driven by new subsidies granted by the Chinese government for the purchase of electric vehicles.
The 24% increase in sales came at the expense of BYD’s gross margins, which fell from 22.1% in 2023 to 21.9% in the third quarter of 2024. Net profit was set at ¥11.6 billion (€1.5 billion), representing an 11.5% increase year-on-year.
The strategy of subsidizing hybrid and electric vehicles has increased BYD’s competitiveness in the Chinese market, allowing it to benefit from a vertically integrated production base and advanced technology in its propulsion systems, which has been globally recognized.
Analysts also acknowledge that the price war in the Chinese market, which is the largest in the world, is affecting the profit margins of both Chinese brands and foreign automakers.
