In our latest Alert Insight post, we share a set of alerts our system generated last week that would be relevant to anyone watching the automotive/EV, battery and energy sectors.
BYD made several announcements during the week: the manufacture of its 7 millionth NEV (“new electric vehicle”, inclusive of EVs and hybrids) on Monday, the release of its 2023 annual report on Tuesday, and a declaration on Wednesday that EVs are entering the “knockout round” with internal combustion engine (ICE)-powered vehicles.
It is difficult to fathom the size and momentum of BYD: their net profit in 2023 grew by 83% to $4.2B vs. 2022, while their revenue grew by 42% to $84B amid a fierce price war. By contrast, Tesla grew its 2023 automotive revenue by 19% to $78B with a net profit growth of 19% to $15B.
Tesla is the leader in EVs in the US and BYD is the leader in China. However, the Chinese EV market is three times larger, growing faster and much more competitive.
This is why the pronouncement by the CEO of BYD, Wang Chaunfu, on Wednesday, March 27th that EVs are entering the “knockout round” against ICE vehicles is so important: China will be the first car market in the world where cheaper EVs will displace traditional ICE vehicles, giving the Chinese EV car manufacturers a powerful window of opportunity to amortize their investments and prepare for a worldwide price war on EVs.
Additional reading: https://electrek.co/2024/03/28/byd-evs-enter-knockout-round-new-tech-launching/
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