Refuse To Fight A Price War! Wang Chuanfu: BYD Is Confident Of Selling 3 Million Cars This Year

According to Bloomberg, BYD Chairman and President Wang Chuanfu told analysts at a meeting that BYD is confident of selling 3 million vehicles this year despite China's economic challenges and fierce price war.

According to people familiar with the matter, BYD also hinted that it will continue to maintain strong profits in the second half of 2023, which further boosted the company's prospects. Because the meeting was private, people familiar with the matter spoke on condition of anonymity.

In the first half of the year, BYD achieved an operating income of 260.124 billion yuan, a year-on-year increase of 72.72%; achieved a net profit of 10.954 billion yuan, a year-on-year increase of 204.68%; The gross profit margin of the automotive business was 20.67%, which significantly exceeded the average of about 10% in the Chinese automotive industry. Since the first half of the year, the price war in the automotive industry has been one after another, and BYD can maintain a gross profit margin of more than 20%, which is amazing.

Earlier this year, Tesla's price war hit other electric car makers. Both Xpeng and NIO's second-quarter losses exceeded expectations. However, BYD has refused to join the price war, instead hoping to rely on its wide range of models and price points to attract consumers.

On August 30, Yuqian Ding, head of automotive research in China at HSBC Qianhai Securities, told Bloomberg Television that BYD's "clear message is that they will not" cut prices. "BYD's upgraded product portfolio can help it largely reduce pricing pressures, thereby keeping it more resilient," she said.

BYD sold 1.5 million pure electric and plug-in hybrid passenger cars in the first seven months of this year, only half of its annual sales target.