Chinese auto company BYD announced on July 14 that it expected a net profit between 2.8 billion to 3.6 billion yuan ($413.8 million – $532 million) in the first half of 2022, up 138.59% to 206.76% year-on-year. The net profit after deducting non-recurring gains and losses was 2.5 billion yuan to 3.3 billion yuan, up 578.11% to 795.11% year-on-year.
The company said that, in the first half of 2022, the new energy vehicle (NEV) industry performed well despite many unfavorable factors such as a macroeconomic downturn, a recurrence of the epidemic, chip shortages and rising raw material prices. Its sales volume of NEVs saw some growth, hitting record highs, while its market share is far ahead of competitors with an overall growth year-on-year. This growth has contributed a substantial improvement in profits while helping to ease profit pressures brought by increases in upstream raw material prices.
In terms of smartphone components and the assembly business, consumer electronics demand is still weak. BYD benefited from the improvement of cost control capabilities and product structure adjustments while also achieving better profitability.
On April 3, 2022, BYD announced a stop to producing fuel vehicles and a focus on pure electric and plug-in hybrid powertrain vehicles. The company is the first traditional automobile manufacturer from around the world that has stopped selling fuel vehicles. This decision instigated higher sales of BYD’s NEVs in Q2.
The company later released its sales figures for the month of June. Data shows that BYD sold 134,036 new vehicles in June, up 162.7% year-on-year. In the first half of 2022, BYD had a cumulative sales of 646,399 vehicles, up 162.03% year-on-year.
Specifically, the sales volume of NEVs accounted for a majority of sales, with those of new energy passenger vehicles in the month of June totalled 133,762 units, a year-on-year increase of 168.8%. In the first half of the year, 638,157 vehicles were sold, up 324.84% year-on-year.