7 months ago • 2 mins
What’s going on here?
Chinese carmaker BYD zoomed ahead on its own high-speed growth track last quarter.
What does this mean?
While other carmakers have been busy duking it out in price wars, BYD’s got a lot of mileage out of staying in its own lane. And by “mileage”, we’re talking global sales of 550,000 last quarter, sending operating revenue skyward by a staggering 80%. See, one of BYD’s secret weapons is an uber-efficient supply chain, owned by the company itself, covering everything from batteries to chips. And that smooth operation meant that even splurging on new factories didn’t put too much of a dent in profit. In fact, BYD managed to post a mind-boggling 411% profit spike compared to the same time last year – blowing past expectations and even topping 2022’s 400% annual growth.
Why should I care?
Zooming in: Overtaking – and taking over.
BYD’s pedal-to-the-metal performance is bound to prompt some road rage from other global carmakers. See, foreign brands held a comfy 70% share of China’s car market not so long ago. But then along came EVs, and local brands like BYD floored it, leaving the competition in their (environmentally friendly) dust. BYD’s sales figures tell the tale: the company has now sped past Volkswagen, China’s top-selling car brand since 2008, for the first time ever. And with BYD racing past that milestone earlier than planned, rival carmakers had better keep an eye on their own speedometers.
The bigger picture: BYD FTW.
Analysts reckon BYD’s got plenty more left in the tank. With a parade of new models showcased at this month’s Shanghai auto show, the firm’s covering all its bases, from budget-friendly rides to luxury cruisers. And BYD’s got ambitious plans to nearly double last year’s sales in 2023, revving up for a major push into Europe, Latin America, and Asia. Competitors, consider yourselves warned.
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