Chinese electric vehicle juggernaut, BYD, announced on Tuesday its projection of a twofold surge in net profit for the third quarter, attributing the surge to robust sales and adept cost management. In a disclosure filed with the Shenzhen Stock Exchange, BYD anticipates a net profit range between 9.55 billion yuan to 11.55 billion yuan for the period spanning July to September, signifying a remarkable surge of 67-102% in contrast to the corresponding period last year. The filing ascribed this substantial upswing to the firm’s “enhancing brand impact, ceaselessly expanding scale advantage, and potent industrial chain-wide cost management proficiency.”
BYD further stated that the net profit for the nine months culminating in September is estimated to have escalated between 120-142% year-on-year, totaling between 20.50 billion yuan and 22.50 billion yuan. This marks a significant surge from the 9.31 billion yuan amassed during the corresponding period the previous year.
In the third quarter, New Energy Vehicle (NEV) sales hit an all-time high, with BYD securing the paramount position in global sales. The company reported the sale of 824,001 NEVs in Q3, an impressive 53% surge in comparison to the same period in 2019. Additionally, the corporation recently finalized an agreement to deliver 2,000 electric buses to the government of Uzbekistan, in a strategic move to advance electrification in public transportation, specifically in their capital city, Tashkent.
This development affirms BYD’s continual triumph as a significant contender in the electric vehicle sector, despite intensifying competition within the automotive industry. Bolstered by effective cost-management strategies and an escalating brand sway, the company appears poised to sustain its upward trajectory well into the foreseeable future.
With a dominant position in global sales and a strategic push for electrification in emerging markets, BYD’s robust Q3 performance underscores its steadfast trajectory in the electric vehicle industry.
(Exchange Rate: $1 = 7.3118 Chinese yuan renminbi)
Source: Reuters
