During the second quarter of 2023, BYD marked its weakest growth since the first quarter of 2022. Over the period, the Chinese manufacturer’s turnover only increased ” what by 67%. According to our colleagues fromAutomotive News Europeit could be the first consequences of the price war in China on the brand’s figures.
BYD’s revenue has only increased what » from 67%
The largest automobile market in the world is going through a delicate period. Chinese manufacturers, and not only, are engaged in a real price war. It is the American Tesla which is at the origin of this situation. What affect the sales of the leader BYD in the last quarter of this year. Nothing alarming, the Chinese brand still recorded an increase in its turnover of + 67%, but it is its weakest progression for several months. So these are the first shocks caused by the situation on the Chinese market.
The BYD Denza D9 electric minivan presented at the Munich Motor Show 2023
The slashed prices that some manufacturers display have an impact on the sales of electric vehicles. A limited impact despite everything: this did not prevent BYD from doubling its profits (860 million euros) and selling very large volumes. Solid performance that has allowed the manufacturer to maintain its leading position as the best-selling car brand in China in the first half of 2023. For its part, BYD has also lowered the price of some of its vehicles. In particular on a series of new models unveiled at the Chengdu Motor Show a few weeks ago.
In this second quarter of 2023, BYD sold 700,000 electrified cars. Enough to beat its previous record achieved between October and December 2022 (683,400 electric and hybrid vehicles). Between April and June 2023, the brand achieved a turnover of 19.8 billion euros and saw its gross margin reach a record 19% (compared to 18.7% in the first quarter of 2023). At the end of July, BYD had already sold 1.5 million electrified models and intends to pass the 3 million units mark before the end of the year.
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Exceptional performance given the battle between Chinese manufacturers and the weakening of the Chinese economy. The BYD Seagull, Dolphin and Seal are particularly popular. The brand has a 37.2% market share in electrified vehicles and does not seem ready to let Tesla pass it by.