BYD Aims to Become China’s Largest Automaker

On the evening of March 28th, BYD released its 2022 annual report. The announcement showed that BYD achieved operating income of ¥ 424.1 billion (about $ 62 billion) in 2022, a year-on-year increase of 96.2%, net profit was ¥ 16.6 billion (about $ 2.4 billion), a year-on-year increase of 445.86%, and basic earnings per share were ¥5.7. The company plans to distribute dividends of ¥ 11.4 (tax included) for every ten shares.

According to reports, during the performance meeting, Chairman of BYD Wang Chuanfu stated that our goal is to become China’s largest car manufacturer by the end of this year.

In response to the recent price war in China’s auto market, Wang Chuanfu stated that the reason for the price war is due to a supply-demand imbalance where supply exceeds demand. Some companies will be eliminated while others will gain a larger market share. This is how industries such as home appliances and mobile phones have competed in the past, and new energy vehicles and cars are no exception. By 2023, the market will also enter an elimination stage, and if there continues to be more supply than demand, the price war will continue.

Wang Chuanfu also explained that the price war has indeed had a certain psychological impact on consumers, but he believes that the impact will decrease by the end of April. With various car exhibitions taking place in May, market confidence will gradually recover. It is believed that in May, the Chinese automobile market will return to a relatively good level of growth.

SEE ALSO: Wang Chuanfu Steps down as Chairman of BYD’s Subsidiary in Hangzhou

Wang Chuanfu mentioned that the demand for Chinese cars in January and February was slightly weaker compared to the same period last year, but BYD still maintained strong growth. Sales in January and February increased by about 84.2% compared to the same period last year. In a few days, BYD’s data for March will be released, and it is believed that sales in the first quarter will still maintain an increase of more than 80% compared to the same period last year.

Up to now, the Tengshi of BYD has received more than 50,000 orders. BYD’s luxury brands are targeting the million-yuan segment market and although facing “huge challenges”, but have still achieved good results. China’s new energy vehicle market has entered a phase of comprehensive expansion. The demand for battery storage is still strong, while consumer demand for batteries is slowing down and global demand for smartphones remains sluggish.

In addition, Wang Chuanfu also revealed that BYD’s semiconductor business IPO plan is still in progress.