Chinese electric vehicle giant BYD is set to report impressive profits once again. The company announced on the 17th that it expects its net profit attributable to the parent company for the first three quarters of this year to be between CNY 20.5 billion and CNY 22.5 billion, an increase of 120.16% to 141.64% year-on-year. In the third quarter, the estimated net profit is set to reach CNY 9.546 billion to CNY 11.546 billion, representing a year-on-year growth of 67% to 101.99%. This quarterly performance mirrors the profitability achieved in the first half of the year.

BYD noted that the new energy vehicle industry continued its robust growth in the third quarter, with BYD achieving historic highs in new energy vehicle sales, maintaining its position as the world’s top seller of such vehicles. Looking at BYD’s monthly sales figures for the first three quarters of this year, the company consistently achieved record-high monthly sales. In September, BYD’s new energy vehicle sales exceeded 280,000 units, with cumulative sales for the first nine months reaching 2.0796 million units.

Furthermore, BYD mentioned that there was a “recovery in demand from Android customers” for its mobile parts and assembly business. BYD Chairman Wang Chuanfu previously stated, “We manufacture many phones, and most of Huawei’s phones are made by us.” This statement gained significant attention on social media. Subsequently, on August 29, the highly anticipated Huawei Mate 60 Pro was released and received a warm reception from consumers. This was followed by the releases of Huawei Mate 60 Pro+ and Huawei Mate X5, which joined the vanguard project.

BYD’s mobile parts and assembly business is primarily managed by its subsidiary, BYD Electronic. BYD Electronic also predicts strong profits, expecting its net profit attributable to the parent company for the first three quarters of this year to be between CNY 2.836 billion and CNY 3.116 billion, an increase of 129.29% to 151.93% year-on-year. The company stated that increased profits are mainly due to a rising proportion of overseas major customers, a rebound in Android customer demand, and continued rapid growth in new energy vehicles and new smart products, which have led to improved utilization of the group’s production capacity, further optimized business structure, and substantial profit growth.

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(Photo credit: BYD)

Source to China Times, despite the intense price wars engulfing the Chinese automotive market, domestic electric vehicle leader BYD is continuing to gain ground. In the third quarter of this year, BYD’s production volumes surpassed Tesla’s, making it the global leader in electric vehicle production. In terms of sales, BYD sold a total of 431,600 pure electric vehicles in the first three quarters of the year, just slightly behind Tesla, bringing it closer to the top spot in global electric vehicle sales.

According to reports from Chinese media on the 3rd of this month, BYD recently released its latest production and sales data. In September of this year, BYD produced approximately 280,000 new energy vehicles, representing a 36.6% increase compared to the same period last year.

TrendForce’s recent research showed that BYD surpassed Ford to become the fourth-largest global car brand in terms of car sales for August. Despite the weakening demand in the domestic car market, BYD was not significantly affected as all of its offerings are new energy vehicles. BYD saw a 5% increase in car sales compared with July and was just 0.1 percentage point behind Honda in market share, which held the third position.

It’s important to note that the term “new energy vehicles” in China includes plug-in hybrid vehicles and fully battery-electric vehicles. Regarding pure electric vehicles, BYD produced around 144,000 units in September, marking a 71% year-on-year increase. In the third quarter, BYD produced approximately 440,000 pure electric vehicles, which is a 67% increase compared to the previous year, establishing it as the largest manufacturer and seller of pure electric vehicles in China.

In contrast, Tesla, which exclusively produces pure electric vehicles, manufactured approximately 430,500 units in the third quarter of this year, marking an 18% year-on-year increase. Data indicates that in terms of production for that quarter, BYD has secured the title of the world’s largest electric vehicle manufacturer.

In terms of sales, BYD achieved a new record with 822,100 units of new energy vehicles sold in the third quarter of this year.

Specifically, BYD sold around 431,600 pure electric vehicles, representing a 23% increase from the second quarter, with 151,200 units sold in September, marking a 59% year-on-year increase. Tesla delivered 435,100 units in the third quarter, a decrease of more than 31,000 units compared to the previous quarter, marking its first decline since the second quarter of last year.

This narrows the gap between Tesla and BYD to 3,456 units, the closest it has been in their ongoing competition. Analysts point out that over the past year, BYD has aggressively expanded into new overseas markets such as Southeast Asia, Japan, the Middle East, Europe, and Latin America, leading to a continuous increase in deliveries. In contrast, Tesla faced production line adjustments and factory shutdowns, resulting in its first-quarter decline in deliveries in over a year, further closing the sales gap.

In recent years, with the Chinese government’s support and encouragement of car purchases, China has become the world’s largest market for pure electric vehicles, accounting for about 33% of global sales, and the market demand remains strong. Given BYD’s competitive advantage in the Chinese market, surpassing Tesla in both production and sales is not an impossible feat.

On the other hand, Tesla, despite initiating a price war successfully earlier this year in China, sacrificed its previously leading profit margins and now faces fierce competition not only from BYD but also from other peers like NIO in an increasingly competitive market. Even in its home market in the United States, Tesla must contend with competition from established automakers such as Ford, General Motors, Hyundai, and Volkswagen.

(Source: https://www.ctee.com.tw/news/20231004700119-439901)

According to the latest data from TrendForce, car sales across 37 regional markets (as indicated in the notes under the table above) in August totaled 5.55 million vehicles, representing an increase of nearly 1% compared with July. This modest growth can be attributed to the upcoming launch of new vehicle models by automakers for the fall season. Some consumers were anticipating price reductions on existing models, while others were waiting for the release of new ones. Therefore, it is expected that car sales will be concentrated in the month of September.

The rankings of the top 10 car brands for August remained the same compared with July. The top three brands, in order, were Toyota, Volkswagen, and Honda. In August, the Japanese car market experienced a seasonal slowdown, leading to a drop in sales for most Japanese automakers. Compared with the previous month, Toyota posted a decline of 2.6%, whereas Honda posted a slight increase of 0.8%.

Chinese automaker BYD surpassed Ford to become the fourth-largest global car brand in terms of car sales for August. Despite the weakening demand in the domestic car market, BYD was not significantly affected as all of its offerings are new energy vehicles. BYD saw a 5% increase in car sales compared with July and was just 0.1 percentage point behind Honda in market share, which held the third position. Japanese automakers can still rely on demand from regional markets such as Southeast Asia to drive their vehicle sales. Therefore, accelerating the pace of overseas expansion is a key challenge for BYD if it seeks to surpass Honda on a global scale.

As for Ford, its performance in August showed a contraction in sales in Europe and the US. With a decline of 6.7% compared with the previous month, Ford dropped to sixth place.

While the launch of new vehicle models this fall is expected to boost new car sales, several factors continue to influence regional markets. These factors include the ongoing strike by the United Auto Workers in the US and Russia’s announcement on September 21st regarding restrictions on the exportation of gasoline and diesel. Russia’s actions could once again impact Europe’s energy supply and lead to a surge in oil prices. Such development could also disrupt governments’ efforts to ease inflation. If inflation heats up again, the consumer market might weaken further, and central banks could be compelled to raise interest rates once more.

China is currently stimulating domestic demand through various policies, but abnormal weather conditions in various parts of the country since the summer have affected local sales. In general, TrendForce believes that as the fourth quarter approaches, automakers will do their utmost to ensure smooth production, meet orders promptly, and spur sales during the year-end holiday season. They will strive to minimize the impact of the reduction in demand visibility caused by the latest economic turbulence.

Source to Carfun, in the past two decades, Chinese electric vehicle (EV) manufacturer BYD has been relentlessly pursuing patents for EV technology, amassing a staggering 13,000 patent applications, a figure more than 15 times greater than Tesla’s modest 863 patents. The stark contrast primarily boils down to one critical component: batteries. BYD not only produces its own batteries but also conducts extensive research and development in this domain. This relentless patent activity is primarily aimed at safeguarding its battery technology.

Recently, a Japanese software company named Patent Result conducted a comprehensive study on EV patents and uncovered some intriguing findings. Between 2003 and 2022, BYD submitted over 13,000 patent applications, while Tesla, during the same period, only filed 863 patents. What’s even more striking is that more than half of BYD’s patent applications pertain to battery technology. This underscores BYD’s unique approach compared to other automakers since they internally develop their batteries. In contrast, most other manufacturers rely on third-party suppliers, making them more reliant on patents to protect their battery technology from imitation.

Batteries constitute a vital element of electric vehicles, and BYD’s approach differs significantly from its competitors. Developing in-house battery technology demands greater dedication and effort. However, other battery manufacturers might attempt to replicate their innovations by dissecting their battery packs. BYD’s blade battery, which uses lithium iron phosphate as the cathode material, has established itself as a leader in the development and production of this kind of battery. It offers superior safety and cost-effectiveness compared to nickel, cobalt, manganese (or aluminum) ternary lithium batteries. Nonetheless, filing patents comes with its own set of risks, as patent applications are made public, potentially enabling competitors to derive various technologies from them.

Take Tesla, for instance. Although Tesla has only submitted 863 patents over the past two decades, its research and development heavily rely on the utilization of publicly available information and software. Consequently, its patents largely relate to charging infrastructure and communication between electric vehicles and drivers. This highlights the divergent priorities in their EV development strategies. Tesla also employs advanced production techniques within its factories to reduce the risk of replication by other companies. The question that arises is whether BYD, with its extensive patent portfolio, can translate this into improved sales and challenge the dominant position of global EV leaders. The answer to this query may become apparent within the next 5 years, as the competition in the electric vehicle sector continues to intensify. (Image credit: BYD)

(Source: https://carfun.tw/ecar-news/14585/)

Source to media China Timse,  in the realm of China’s mainland new energy vehicle industry, NIO announced on the 20th that it has successfully secured $1 billion in funding through two convertible corporate bond offerings. This move aims not only to reduce existing debt but also to strengthen its balance sheet. In addition, BYD has unveiled the pricing for its electric vehicle model, Dolphin, which is making its entry into the Japanese market.

The starting price for Dolphin in Japan is 3.63 million Japanese yen, approximately $24,565.2 USD. This Dolphin model is BYD’s second entry into the Japanese automotive market. For those seeking a longer-endurance version of Dolphin, the price is set at 4.07 million Japanese yen. Earlier this year, BYD introduced a higher-priced electric SUV in Japan.

Another electric vehicle manufacturer in China, NIO, has disclosed that it raised $500 million through a 6-year convertible bond issuance and another $500 million through a 7-year convertible bond offering. These bonds are categorized as senior unsecured bonds, with a yield of 3.875% for the 6-year bonds and 4.625% for the 7-year bonds.

Upon the release of this news, NIO’s stock price in Hong Kong experienced a sharp 12% drop during the morning session on the 20th. NIO plans to allocate some of the raised funds to repurchase existing debt securities and enhance its financial resilience.

NIO had previously announced at the end of August that they plan to launch their first self-developed smartphone around the end of September. They aim to enhance the attractiveness of their vehicles by leveraging improved software connectivity. During the second quarter, NIO reported a net loss of 6.12 billion RMB, approximately $8.3951 billion USD, compared to a net loss of 2.75 billion RMB in the same period last year. (Image credit: BYD )

(Source: https://www.chinatimes.com/realtimenews/20230920002512-260410?ctrack=pc_main_rtime_p06&chdtv)