ShenzhenPress (Shenzhen)—BYD reported growth a gross margin of 22.75% in the third quarter of 2022. This is significantly stronger than its competition, including Changan (17.4%), SAIC (9.6%), GAC (4.6%), and Huawei-backed Seres (-57.3%).
Major automakers are struggling with rising lithium prices and price war. Lithium carbonate prices have jumped nearly 80% since the start of the year, crossing the threshold of RMB 500,000 (USD 68,775) on September 13.
The Chinese government will phase out EV purchase subsidies end of the year. This could see the price war intensify as experts predict price reductions as the automakers fight for market share, a move that would further impact short-term profitability.
Shenzhen-based BYD reached an estimated RMB 10,000 profit per unit sold in the third quarter this year, almost double of the estimated RMB 6,400 in the second quarter.
Net profits of RMB 5.7 billion in the third quarter is a 350% year-on-year increase compared to 2021. In comparison, Tesla reported USD 3.3 billion in net income in the same quarter.
BYD posted sales of RMB 117 billion (USD 16.1 billion) for the third quarter, a 116% year-on-year increase compared to 2021.