BYD, the leading producer of battery electric vehicles (BEVs) and plug-in hybrids, is expecting a significant increase in its 2022 net profit compared to the previous year.
According to an exchange filing, the company projects a net profit of 16-17 billion yuan ($2.37-$2.52 billion) from sales of 1.86 million cars, marking a five-fold increase from its 2021 profit of 3 billion yuan.
BYD attributes its success to strong sales growth and improved profitability, achieved by effectively reducing the cost pressure from rising raw material prices.
See also: BYD officially confirmed two new EV brands that will be launched in 2023
The company said it had it achieved strong sales growth and significantly improved profitability and had “effectively relieved the cost pressure brought about by the rising upstream raw material prices”.
The automaker, based in Shenzhen, ceased production of combustion engine vehicles in April 2022. Despite lagging behind Tesla by nearly 400,000 units in global sales of fully electric cars, BYD plans to boost sales at home and internationally with its new line of BEV products, including the Seal model.
Additionally, BYD’s best-selling Qin and Han sedans saw a 82.6% and 132.2% increase in sales in 2022, while Tesla’s Model 3 sales declined 17.5%, according to the China Passenger Car Association.
