BYD posted record earnings in the fourth quarter of 2024, driven by surging new energy vehicle (NEV) sales, though its gross margin declined due to rising operating costs.
The company reported a net income of RMB 15.02 billion ($2.07 billion) for the quarter, up 73.1% from a year earlier and 29.4% higher than the previous quarter, according to its annual report released Today. Revenue reached a record RMB 274.85 billion ($37.89 billion), marking a 52.7% increase year-on-year and a 36.7% rise quarter-on-quarter.
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BYDâs performance was bolstered by strong NEV sales, with 1,524,270 units sold in the fourth quarter, representing a 61.3% year-on-year increase. However, the company faced pressure on profitability as its gross margin fell to 17.01% from 21.89% in the previous quarter. The decline was attributed to rising operational costs, which were adjusted in line with updated accounting standards.
“As part of the new standards, sales expenses are now included in operating costs, which led to a revision of our reported figures,” the company stated in its report. Following the adjustment, BYD’s fourth-quarter gross margin was revised to 15.76%, down from the previously reported 21.22%.
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Despite margin pressures, BYD generated strong cash flow, with RMB 77.18 billion in operating cash flow during the quarter, accounting for 57.8% of the full-year total. The company announced plans to invest up to RMB 60 billion in wealth management products.
For the full year 2024, BYDâs revenue reached RMB 777.1 billion, a 29.0% increase from the previous year. In U.S. dollar terms, the companyâs revenue exceeded $100 billion, surpassing Tesla for the first time, as the U.S. automaker reported 2024 revenue of $97.7 billion.