BYD slows down in the fourth quarter, but profits record in 2023

Chinese carmaker Byd, the world's leading electric vehicle manufacturer, reported a record profit for 2023 of EUR 3.83 billion (30.04 billion yuan). The increase was 80.7% over 2022 (and ahead of this percentage it is of relative importance that market estimates were slightly higher: 30.94 billion yuan), according to the group's statement to the Shenzhen stock exchange - where it is listed and has recorded +14% since the start of the year - thanks to enthusiasm for the electric market and despite the difficult conditions of the Chinese economy.

It has to be said that profits for the fourth quarter of 2023 grew 'only' by 18.6%, the smallest increase since the first quarter of 2022. In fact, sales of electric vehicles have lost momentum in the world's largest car market, while a tough price war is underway in the face of falling demand. Fourth-quarter sales grew 15.1% to EUR 22 billion (180.04 billion yuan).

Just Monday, the Shenzhen giant set the starting price of a new version of its electric sedan Seal at 5.3 per cent less than the previous model, at the equivalent of EUR 23,000. This is the sixteenth model presented this year with a restyling and a lower price. The highest discount offered this year is 21.6 per cent. In particular, the Seagull city car in one year went from costing (in China) 12 thousand to 9 thousand euro, a price that could go below 20 thousand here. Competition with European manufacturers on the Old Continent market is expected to be fierce.

The result announced by Byd, a group note explained, is in line with the forecast announced in January (between 29 and 31 billion yuan). In detail, sales for 2023 increased year-on-year (+42%) to EUR 76.8 billion (602.3 billion yuan). However, the growth in 2022 was much stronger (+445.8% over 2021).

The group - which has just surpassed the threshold of 7 million Nev vehicles, i.e. battery electric and plug-in hybrids sold - intends to focus on Europe this year (with the announcement of the construction of a plant in Hungary) and to enter the luxury market: in fact, it has launched a 1.68 million yuan high-performance electric supercar that will compete with rival models from companies such as Ferrari and Lamborghini.