BYD Global Sales Are Up

Revenue and profits also rose sharply, thanks to strong demand for its vehicles. BYD is expanding significantly abroad due to setbacks in its domestic market. The electric car manufacturer offered substantial discounts at the end of May, but the Chinese government wants to end the significant price cuts in the auto industry. Beijing fears these are undermining brand value and putting companies under financial pressure. Nevertheless, manufacturers like BYD continued to offer discounts in July.

BYD’s revenue increased by 23 percent to 371.3 billion yuan, equivalent to approximately €44.6 billion. Net profit rose 14 percent to 15.5 billion yuan (approximately €1.9 billion).

BYD may face a more difficult time in the second half of the year. Automakers must try to meet their annual sales targets without price cuts in China. BYD aims to sell 5.5 million vehicles globally for the year, but the automaker sold just under half of that number in the first half.

Car sales figures for the European Union were released on Thursday. They showed that BYD sold more than three times as many new cars in the bloc in July compared to the same month last year. Nearly 9,700 BYDs were registered in the EU last month, compared to over 3,100 a year earlier. This increased its market share from 0.4 percent to 1.1 percent.

• Read More: With nearly 3,000 horsepower, BYD’s electric vehicle is the most potent vehicle in the world