BYD profits surge, as US legacy car makers drown in losses from EVs

BYD Hong Kong Launch Chongfai Chiu
IMAGE: CHONGFAI CHIU
BYD, the Shenzhen based auto and battery maker is looming in Tesla’s rear vision mirror as recent results cement its position for contender of number 1 seller of new energy vehicles globally.China, the world’s biggest and most competitive car market helped deliver an 82.2% increase in third quarter profit to 10.41 billion yuan or USD $1.42 billion on revenue of 162.15 billion yuan for the Chinese car maker.By market capitalisation or total share value BYD is actually number 3 with a market cap of about $US 95 billion, well behind Toyota at about $US235 billion, and Tesla with $627 billion, but well ahead of other legacy car makers such as GM and Ford.
BYD’s closely watched gross margins moved from 18.73% to 22.12%, indicating the vertically integrated playbook of manufacturing battery packs, electronics and the vehicle itself in-house is providing genuine advantages for the company.

In comparison Tesla’s gross margin moved a touch below the expected 18% result to 17.9%. The quarter saw BYD deliver 71,231 new energy vehicles into offshore markets, including Australia – where it is the second biggest seller of EVs behind Tesla, thanks to the popular Atto 3.

BYD is effectively locked out of the second biggest market globally, the US, but is now selling vehicles in Mexico, and has a presence in diverse markets including Japan, India, Malaysia, Singapore, and Mexico.

No doubt Toyota executives in Japan saw the BYD vehicles land with a splash on home territory at the Tokyo Motor Show will be noting the rise of a brand that is demonstrating it can sell vehicles in a range of markets.

Meanwhile the brakes are on for manufacturers in North America who may be starting to realise that electric monster trucks may not be what the market there is looking for.

The Tesla model 3 and Model Y are doing fine but General Motors and Ford have both announced they will “push back” spending on electric vehicles due to the significant losses they are making with the rollout of their EVs.

In a confusing statement Mary Barra of GM repeated their commitment to manufacturing EV’s, but maybe not just now. Giving a nod to the cost advantages BYD and Tesla have the Ford CFO also walked back production and sales goals for EV’s.

 

 

After a quarter that saw bruising United Auto Workers strikes at unionised factories it is not clear when Ford, GM, and Stellantis will get their EV mojo back.

Hyundai motor group executive vice-president Seo Gang Hyun is having a better time of it, his group noted a net profit of 3.2 trillion won, or US $3.78B and reminded the market that the group including Hyundai, KIa, and Genesis plans to launch 31 new electric vehicles by the end of this decade.

In Australia we are inching closer to the launch of the Kia EV9, a seven seater ready to fill a niche for a large electric family vehicle with moderate off-road capability.

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Volta Automotive Ltd which imports and sells Electric Vehicles and Hybrids Car dealers New Zealand and Australia can list and sell on our website www.voltnz.autos

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