Jamie Spencer
Chinese EV Giant Sets Record as It Tops Volkswagen in Sales
Chinese electric vehicle leader BYD reported a record fourth-quarter net profit of 15 billion yuan ($2.1 billion), a 73.1% increase over the previous year, as aggressive pricing and surging demand cemented its dominance in the world’s largest auto market.
Revenue in Q4 rose 52.7% year-on-year to 274.9 billion yuan. For all of 2024, profit climbed 34% to a record 40.3 billion yuan, with revenue up 29%, the company said in a filing Monday.
Backed by Warren Buffett, BYD sold a record 4.25 million vehicles last year, overtaking Volkswagen to become China’s top-selling car brand. Its Hong Kong-listed shares have surged 51% year-to-date, just below their all-time high.
Price Cuts, Innovation Drive Market Share
BYD has escalated a two-year EV price war by launching cheaper models and rolling out its new supercharging platform. It has also committed to adding smart driving features across most of its vehicles at no additional cost, a move that could pressure rivals already struggling with shrinking margins.
Sales of autos and related products — which made up nearly 80% of total revenue — posted a 22.3% gross profit margin in 2024, up 1.3 percentage points year-on-year.
Global Expansion Accelerates
BYD raised $5.59 billion earlier this month through a primary share sale to fund R&D and overseas expansion. Its international sales jumped 71.9% and now account for 10% of total volume. The company is reportedly weighing a third European plant, with Germany as a potential location.
As the EV arms race intensifies globally, BYD’s scale, innovation, and pricing strategy appear to give it an edge — at least for now — as traditional automakers scramble to adapt.
