BYD increases quarterly profit by 241%
BYD posted a net profit of 808 million yuan (116 million euros) in the first quarter of 2022, up 241 per cent from the same quarter last year. Sales increased by 63 per cent to 66.8 billion yuan.
The sales growth to the equivalent of 9.61 billion euros was mainly due to growth in sales of electric cars and plug-in hybrids, according to BYD. Sales of these so-called new energy vehicles reached a record high at BYD, with 285,000 NEVs sold in the first quarter of 2022, an increase of 423 per cent year-on-year. Of these, 143,000 were pure electric vehicles (+270%) and 142,000 were plug-in hybrids (+800%).
The fact that the growth is mainly due to the New Energy Vehicles has a simple reason: BYD no longer sells pure combustion vehicles. The company had stopped the production of pure petrol engines in February, and already in March not a single vehicle with this drive was delivered. However, production of combustion engines for plug-in hybrids is still going on.
With this result, BYD has landed in the middle of the range that the company itself had forecast just a few weeks ago. At that time, the range of 650 to 950 million yuan was mentioned for profit – with 808 million yuan, the middle was hit quite accurately.
Two price increases in January and March also contributed to the profit increase, which was significantly stronger than the growth in turnover. The latter, however, will probably only have its full effect in the second quarter. According to BYD, the price increases were also necessary to cushion the pressure on profits from higher commodity prices. However, BYD also states that the measure will “lead to a significant improvement in earnings” – so it is not only due to the increased prices in the supply chain.
Despite the rising sales figures (+ 180 per cent in Q1, figures for April are not yet available), delivery times remain relatively short – at least by the standards currently prevailing in Europe. A new BYD car ordered now will be delivered in two to three months.
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