In the first quarter, BYD increased its revenue and profits, and BYD's price war did not affect its profitability

Car Market Observation

2024-04-29 22:50Posted in Shandong Automobile Creator

Affected by the price war and other factors, SAIC's revenue and net profit declined, while Changan Automobile's revenue increased slightly, and its net profit and non-net profit both fell sharply. It can be seen that the price war started by BYD has brought fluctuations in revenue and expenditure to many car companies.

On April 29, BYD announced its first-quarter report, with an operating income of 124.944 billion yuan, a year-on-year increase of 3.97 percent, a net profit of 4.569 billion yuan, a year-on-year increase of 10.62 percent, and a non-net profit of 3.75 billion yuan, a year-on-year increase of 5.24 percent.

This data has surprised many people, starting at the end of February, BYD has successively launched Qin PLUS Glory Edition, Destroyer 05 Glory, Hantang Glory Edition and other models, a significant feature is that the price has fallen sharply. Thus leading BYD all the way to the bullish, returning to 300,000 units in March.

It is undeniable that BYD's sales have fluctuated, showing a trend of falling first and then rising, with the impact of the Spring Festival holiday in the first quarter, sales in January and March were 201,493 units, 122,311 units and 302,459 units, and only a slight decline occurred in February. A strong rebound was seen in March, with sales of 626,263 units in the first quarter, up 13% year-on-year.

It is worth mentioning that the ratio of sales of pure electric vehicles and plug-in hybrid vehicles is almost 1:1, which is relatively balanced. According to conventional thinking, BYD has made a sharp price cut, and it stands to reason that profits should have declined, but BYD's net profit and non-net profit have increased year-on-year. In the first quarter of this year, BYD's gross profit margin reached 21.88%, a year-on-year increase of 4.02%.

It not only makes people admire BYD's ability to integrate the industrial chain, but also the cost advantages brought by improving the industrial scale effect. It is worth mentioning that in the context of dominance, BYD is still increasing R&D efforts, and R&D expenses in the first quarter were as high as 10.611 billion yuan, a year-on-year increase of 70.10%, mainly due to the increase in employee salaries and material consumption.

Large-scale R&D investment can form BYD's technical fish pond, so as to continuously provide "ammunition". In the past two years, overseas exports have become a new growth point for independent car companies, and some car companies have even achieved a one-to-one situation in domestic and foreign sales, which shows that this is a big cake.

BYD exported 240,000 units last year, with an average of 20,000 units per month. Since the beginning of this year, BYD's exports in the first quarter have reached 97,899 vehicles, a year-on-year increase of 153%, and the average monthly export volume has increased to 30,000+. It is believed that this is far from BYD's ultimate strength, and the number of such exports will increase as the tide of vehicle electrification and intelligence sweeps the world.

"If the foundation of the first half of new energy vehicles is the battery, the foundation of the second half is the chip. Wang Chuanfu, chairman of BYD, once said. In 2024, BYD will accelerate its efforts to become intelligent and put forward a new strategy of "vehicle intelligence". In 2024, the efficient integration of electrification and intelligence will be realized, leading the new direction of intelligent development of the industry.

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