China’s leading electric vehicle manufacturer, BYD, reported a record-breaking quarterly profit on Monday, selling 526,409 fully electric vehicles in the fourth quarter, reaffirming its robust position in the highly competitive high-tech sector, where it faces both local and international rivals.
The Shenzhen-headquartered company recorded a profit of 10.4 billion yuan ($1.42 billion) for the third quarter (July-September), its most significant earnings for a single quarter ever, showcasing an 82% annual increase, according to a statement issued to the Hong Kong Stock Exchange.
The reported figure aligns with BYD’s earlier predicted earnings for the quarter, which were estimated to be between 9.55 billion yuan and 11.55 billion yuan.
With a net total income of 21.4 billion yuan from January to September, BYD saw its earnings more than doubled compared to the previous year, exceeding their total annual profit from the past year which was 16.6 billion yuan.
Demand for electric vehicles in China has seen a significant increase in recent years. This rise is noteworthy in China, the world’s largest producer of greenhouse gases in absolute terms.
BYD, which counts US investment mogul Warren Buffet among its backers, aims to have electric and hybrid vehicles constitute the majority of its sales by 2035.
BYD, originally a battery design and manufacturing specialist, reached a significant milestone earlier this year by becoming the first international manufacturer to produce more than five million electric vehicles. This achievement established the company as the world’s premier manufacturer of new energy vehicles and power batteries.
The company broadened its focus to the automotive sector in 2003. Today, numerous foreign automotive giants such as Tesla, BMW, Mercedes, and Audi rely on BYD for their battery needs.
The electric vehicle industry in China has gained significant advantages over the years due to decades of Beijing’s subsidies in related technology sectors.
However, the increasing success of Chinese electric car manufacturers in overseas markets has provoked inquiries. For instance, last month, the European Union initiated a probe into China’s related subsidy policies, alleging unfair competition.
As of last year, BYD has stopped manufacturing gasoline-powered cars and is now solely concentrating on hybrid and electric models.
Despite its focus and achievements, BYD still contends with fierce competition from several local brands, including XPeng, Nio, and Geely.
