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BYD Announces a 241% Increase in Profits as a Result of Increased Demand For Electric Vehicles And Batteries!
BYD, a Chinese battery and electric car manufacturer backed by Warren Buffett, reported a rise in first-quarter earnings, propelled by demand for battery-powered vehicles as it weathered supply chain problems caused by an ongoing shortage of semiconductor chips and an increased cost of raw materials.
According to a statement issued by the Shenzhen-based firm on Wednesday, net income increased 241 percent year-on-year to $123 million (808.4 million yuan) in the 3 months ended March 31. That was at the upper end of the preliminary earnings range of 650 million yuan to 950 million yuan that was revealed last week. To 66.8 billion yuan, sales increased by 63 percent.
The firm’s diverse portfolio of businesses has helped it to overcome a number of hurdles, including the global shortage of semiconductor chips, the COVID-19 outbreak that has lockdown many Chinese cities, and soaring commodity prices. BYD increased auto prices twice in the first quarter of the year, citing increased raw material costs as the reason.
They claimed that “BYD may get a larger share of the expanding new energy vehicle market in China, as its refreshed hybrid and battery-electric ranges woo customers with cheaper and safer batteries,” referring to BYD’s slimmer cells.
BYD, which was founded in 1995 and is now one of the major manufacturers of electric vehicles and batteries in China, was one of the first to bet on the demand for green cars spurred by government plans to decrease carbon pollution. According to data from the China Association of Automobile Manufacturers (CAAM), the firm’s proportion of new energy vehicle sales reached 17.1 percent in 2021.
In China, about 3 million new energy vehicles, including plug-in hybrid vehicles, were sold last year, and that number is likely to climb to 5.7 million this year. BYD announced earlier this month that it will no longer manufacture vehicles that run solely on fossil fuels.