Chinese automotive giant BYD announced today (Wednesday) an increase in its sales, surpassing its global competitor Tesla in revenue for the first time in the third quarter, as it expands into international markets. BYD, a leader in the electric vehicle and battery sector, is intensifying targeted efforts among Chinese automakers to expand their markets abroad, efforts that are undermined by the sharp trade policy conflict between Beijing and the West.
BYD reported operational revenues of 201.1 billion yuan (28.2 billion dollars) for the third quarter, according to data released on the Hong Kong stock exchange, up 24% compared to the same period last year. The company’s quarterly revenue has for the first time exceeded that of American company Tesla for electric vehicles, which reported 25.2 billion dollars in revenue for the third quarter last week.
BYD's net profit for this period was 11.6 billion yuan (1.6 billion dollars), up 11.5% compared to the third quarter of last year. BYD has specialized in designing and producing batteries, then diversified its operations, including the production of vehicles in 2003.
Although market share acquisition was mostly due to favorable state subsidies to foreign automakers, competitors from Europe have faced tough competition from lesser-known local competitors. Earlier this year, the US and Canada increased their customs tariffs on Chinese electric vehicles to 100%.
BYD continues its intensive global expansion, planning to open factories in Hungary and Turkey. The company has strengthened its hopes of achieving this goal by July, when these vehicles accounted for more than half of total sales in the domestic market for the first time, according to the association of Chinese auto manufacturers. China aims to primarily sell electric and hybrid vehicle models by 2035.
