BYD Reportedly Sets 2023 Sales Target of 4 Million Vehicles

News emerged on January 3 that Wang Chuanfu, the chairman of Chinese automotive giant BYD, has set a goal of selling a total of 4 million vehicles in 2023. In response, BYD said that due to the continuing pandemic, there are many uncertainties regarding consumer demand and supply chain systems, so it is difficult for the company to set a precise sales target for this year.

BYD added that according to market changes, it will give full play to its own advantages and flexibly formulate various plans to meet the needs of consumers.

According to a production and sales report disclosed by BYD, the firm’s sales volume of new energy vehicles in December last year was 235,200 units, up 150% year-on-year. Since September last year, BYD’s monthly sales volume has been stable at over 200,000 units. BYD’s annual sales of new energy vehicles in 2022 reached 1,863,500 vehicles, an increase of 208.64% year-on-year, far exceeding the originally expected target of 1.5 million vehicles. Among them, the sales volume of pure electric vehicles exceeded 910,000 units, while Tesla sold 1.31 million.

BYD’s overseas sales again broke 10,000 units in December, reaching 11,300 vehicles. Looking back, BYD delivered 4,026 new energy vehicles to overseas markets in July last year, 5,092 in August, 7,736 in September and 9,529 in October.

In 2021, BYD’s performance was mediocre. The turning point occurred in April last year when BYD announced that it would stop the production of fuel vehicles, and focus on pure electric and plug-in hybrid vehicles in the future. Since then, BYD has become the first traditional car company in the world to completely stop producing fuel-based vehicles.

Essence Securities has said it believes that in the next three to five years, the three major factors are expected to continue to drive BYD’s high performance. The first one is high-price products and precision marketing and services. Second, technological innovation gradually reduces the cost of products and realizes the growth of profit. Third, with the expansion of income, depreciation and amortization and expense ratio of a single vehicle are expected to decline.

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Guosheng Securities regards overseas markets as a new force to drive BYD’s growth. The company has successively released its Dolphin model in Colombia, its Han and Tang series in Chile, the overseas version of the BYD app in Thailand, and has set up joint ventures in Uzbekistan to produce DM-i and other models. Soochow Securities expected BYD’s new energy vehicle sales to exceed 3 million units in 2023, an increase of nearly 60% compared with 2022.