BYD has reported a more than 200% jump in first-half earnings as Tesla’s main Chinese rival shrugged off an intense price war that has battered foreign groups and smaller start-ups in the world’s biggest car market, reports the Financial Times. BYD said on Monday that net income rose 205% to RMB 10.95 billion ($1.5 billion) in the six months to the end of June as the Warren Buffett-backed group cemented its dominance over the market for plug-in hybrid and battery-powered electric vehicles in China. Revenue was up 73% to RMB 260.1 billion.
The result, which was published after markets closed in China on Monday, follows a 400% jump in annual net profit in 2022. It comes despite a price war that has squeezed both smaller companies and larger auto groups in China. And it signals the latest warning to automakers around the world as BYD sharpens its focus on exporting its low-cost EVs to foreign markets.
China is forecast this year to become the biggest exporter of cars, overtaking Japan. BYD, which is also one of the world’s biggest EV battery producers, is spearheading a wave of Chinese EV exports to Europe, among other regions. Backed by a low-cost supply chain in China, the company, led by billionaire founder Wang Chuanfu, is expected to challenge legacy groups such as Volkswagen, which have been slower to take up the move to EVs.
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