Summary
– BYD’s profits declined by 47% in Q1 2024 compared to Q4 2023
– BYD sold over 300,000 battery electric vehicles in Q1 2024, down from 526,000 in Q4 2023
– Tesla’s deliveries also declined by 8.5% in Q1 2024
– BYD set lower sales growth goals for the year in response to China’s ongoing EV price war
– BYD expects to top deliveries at 3.5 million units this year, including EVs and plug-in hybrids
Article
In the first quarter of 2024, BYD experienced a significant decline in profits by 47% compared to the previous quarter. This decline was attributed to the decrease in sales of battery electric vehicles (BEVs), with BYD selling over 300,000 BEVs in Q1 compared to 526,000 in Q4 2024. Despite beating Tesla in volume deliveries in Q4 2023, BYD lagged behind the US electric vehicle manufacturer in Q1 2024. Tesla also faced challenges in Q1, with deliveries declining by 8.5% year-over-year due to various issues such as an arson attack on Tesla Giga Berlin.
BYD delivered approximately 300,114 BEVs and 324,284 plug-in hybrid cars in the first quarter of 2024. The Chinese automaker faced challenges during this period, particularly due to China’s ongoing EV price war which has impacted economic growth as automakers compete for more market share. In March 2024, BYD set lower sales growth goals for the year, aiming to deliver 3.5 million units including both EVs and plug-in hybrids. This target represents a 20% increase from the previous year but is lower in terms of year-over-year growth compared to 2022 to 2023. The company also plans to export more than double the number of units compared to the previous year.
According to BYD Chairman and President Wang Chuanfu, achieving a 20% increase in sales in the current market conditions will not be easy, as overall demand for EVs in China is expected to decrease in 2024 due to concerns about job prospects and incomes among consumers. Zhao Zhen, a sales director at Wan Zhuo Auto in Shanghai, expressed skepticism about BYD’s sales growth target, stating that it will be challenging given the weak market sentiment. Despite the challenges, BYD remains optimistic about its sales outlook for the year, with plans to focus on both domestic and international markets to drive growth.
If you have any tips or information regarding the developments at BYD, you can contact Maria at maria@teslarati.com or via X @Writer_01001101. The decline in profits and sales at BYD in Q1 2024 reflects the overall challenges faced by the electric vehicle industry in China and globally. As competition intensifies and market conditions remain uncertain, automakers like BYD and Tesla are navigating a complex landscape to achieve their sales targets and maintain profitability. While the future outlook for the EV market in China may be uncertain, companies like BYD are adapting their strategies to address changing consumer preferences and market dynamics in order to drive growth in the coming years.
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