AutoBeta(AutoBeta.net)08/29 Report--

On the evening of August 28, BYD released its interim results for 2023. According to the report, BYD achieved operating income of 260.124 billion yuan in the first half of the year, an increase of 72.72% over the same period last year, of which revenue from automobiles and related products reached 208.824 billion yuan, up 91.11% from the same period last year, accounting for 80.28% of the total revenue. The net profit was 10.954 billion yuan, an increase of 204.68% over the same period last year.

BYD's sharp increase in profits is related to its strong performance in the car market. Official figures show that BYD sold 1.2556 million vehicles in the first half of 2023, up 94.25 percent from a year earlier, including 616800 pure electric vehicles, up 90.66 percent, and 631400 plug-in hybrid models, up 100.66 percent from the same period last year.

In February this year, the champion version of BYD Qin PLUS DM-i went on sale, with a starting price of 99800 yuan directly challenging Nissan Xuanyi, Volkswagen Longyi and other best-selling compact fuel cars. Qin PLUS sold a total of 200300 vehicles in the first half of the year, surpassing Nissan Xuanyi's 164800 and Volkswagen Longyi's 151800, according to the Federation of passengers.

After Qin PLUS DM-i champion version, BYD also launched Han champion version, Tang DM-i champion version, destroyer 05 champion version, seal champion version, Song ProDM-i champion version and other models. The price of these models went down further, which is also the key to the steady growth of BYD sales. At the same time, BYD also launched the look up and equation Leopard brand, forming a BYD brand as the mainstream, momentum, look up, equation Leopard for the high-end brand structure.

Figures show that BYD sold 74200 overseas cars in the first half of the year, surpassing the 55900 for the whole of 2022. So far, BYD has entered 54 countries and regions, including Japan, Germany, Australia, Brazil and the United Arab Emirates. In July, BYD announced that it would build three new factories in Brazil to accelerate the global layout with the advantage of the whole industry chain.

BYD surpassed Mercedes-Benz and BMW in global sales in the first half of the year, making it into the top 10 for the first time, according to research firm MarkLines. According to previous reports, BYD aims to hit 3 million vehicles in 2023, while the target completion rate for the first half of the year is 41.85%, which is still a long way from the set target. Of course, with the launch of more and more new BYD models and the layout of the equation Leopard brand, 3 million sales may not be a problem for BYD.

According to the data, BYD's gross profit margin for cars and related products in the first half of the year was 20.67%, higher than Tesla's 17.9%. At the beginning of 2023, Tesla was the first to start a price reduction. Domestic Model 3 hit a record low after a sharp price reduction, which led to an increase in sales, but the price reduction promotion also led to the decline of Tesla's gross profit margin, which fell to 18.2%. In the process, BYD led sales growth by launching the champion version, and with the sharp improvement of scale effect and supply chain management, the gross profit margin of cars increased to 20.67%.

Generally speaking, at present, BYD has passed the barrier of scale. At a time when the penetration rate is already high, going out to sea and high-end will become the key direction of enterprises in the future. In addition, with the improvement of scale, BYD should further strengthen the company's control over the industrial chain and improve bicycle profit margins in order to narrow the gap with Tesla. If BYD can achieve globalization and, like Tesla, set up factories around the world, then BYD will most likely challenge Tesla and become the global leader in new energy in the future.

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