The company is targeting sales of 500,000 vehicles internationally this year, over twice the amount sold last year, and aims to increase that figure to 1 million by 2025, according to Chairman Wang Chuanfu’s statements at a BYD investor meeting.
Chinese electric vehicle giant BYD aims to sell 3.6 million vehicles in 2024, a 20% increase from its record-breaking sales last year, according to China Business Network (CBN). The company also plans to more than double its overseas sales to 500,000 vehicles this year, with a goal of reaching 1 million by 2025, as stated by Chairman Wang Chuanfu during a BYD investor meeting. However, BYD has not immediately commented on these reports.
Wang’s statements followed BYD’s slowest quarterly profit growth in two years amid slowing EV sales in the world’s largest auto market. He predicted a “knockout round” in the new energy vehicle industry between 2024-2026, focusing on scale, cost, and technology. He also estimated that the market share of joint ventures in China would drop from 40% to 10% over the next three to five years.
Additionally, BYD plans to launch its next-generation plug-in hybrid system in May, which features fifth-generation DMI technology. This technology is expected to reduce fuel consumption to 2.9 litres per 100 km and extend combined ranges to up to 2,000 km. Currently, BYD’s hybrid system consumes 3.8 litres per 100 km with combined ranges above 1,200 km.
The annual results announced by BYD on Tuesday underscore the robustness of its transition towards electric vehicles (EVs). Contrary to the widely held belief in other countries that selling EVs is not profitable, BYD’s financial performance defies this notion. Even after China ended its purchase subsidies for EVs in 2022, BYD reported a net income of 30.04 billion yuan ($4.16 billion), marking an impressive 80% increase from the previous year. This growth in profit outpaces the 60% rise in sales volumes, indicating an acceleration in profitability.
Furthermore, this achievement did not occur in a protected or monopolized market. Over the past year, the Chinese car industry has experienced intense price competition, transforming it into a highly competitive arena reminiscent of a battle royale. In this environment, traditional non-battery vehicles are being overshadowed by a wide range of more affordable and appealing electric models. Despite these challenging market conditions, BYD has managed to maintain steady profit margins, which are likely to be around $1,000 per vehicle.
