BYD's First-Half Profit Rose on Strong EV Sales Despite Slowing China Demand

By Jiahui Huang

BYD's first-half net profit rose on higher electric-vehicle sales despite weak demand in the world's largest auto market.

The Chinese EV giant said Wednesday that its net profit climbed 24% to 13.63 billion yuan, equivalent to $1.91 billion, in the first half of 2024 from a year earlier.

Its revenue rose 16% to 301.13 billion yuan, thanks to robust sales of its EV models despite slowing Chinese auto demand.

BYD said its gross profit margin increased to 20.0% from 18.3% a year earlier, thanks to a stronger EV business. The company is one of the few Chinese EV makers that have reported double-digit gross margins for the second quarter. Li Auto reported a gross margin of 19.5% for the period, while EV leader Tesla posted an automotive gross margin of 14.6%.

The company delivered 426,039 fully electric vehicles in the second quarter, up 21% from a year earlier. Rival Tesla sold 443,956 units during the period, maintaining its position as the world's top EV seller. The Chinese automaker briefly overtook Tesla in battery EV sales in the fourth quarter last year.

BYD and other major Chinese EV makers have been aggressively expanding overseas amid a continuing price war in a crowded home market and increased tariff pressure from major trade partners.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

August 28, 2024 06:30 ET (10:30 GMT)

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