BYD reports 24.4 percent rise in profits amid growing demand for EVs


(MENAFN) Chinese automaker BYD has reported a 24.4 percent increase in net profit for the first half of 2024, driven by strong demand for electric vehicles both domestically and internationally. The company's net profit reached USD1.9 billion from January to June, up from USD1.54 billion during the same period last year. This performance is reflected in the sales figures, which surged by 15.8 percent year-on-year to USD42.3 billion, as disclosed on the Hong Kong Stock Exchange where BYD is listed.

Headquartered in Shenzhen, BYD is a major player in China's electric vehicle market, which is the largest in the world. The company's slogan, "Make Your Dream Come True," captures its commitment to advancing electric mobility. China's leadership has set ambitious goals for electric and hybrid vehicles to dominate the market by 2035. Notably, electric vehicles accounted for over half of total domestic sales in July, marking a significant milestone, as reported by the China Association of Automobile Manufacturers.

Although government subsidies initially spurred sales, these incentives were phased out by late 2022, leading to a mature market landscape. In response to this shift and heightened competition, domestic electric vehicle manufacturers, including BYD, have engaged in a price war to stay competitive, which has impacted their profitability. Despite these challenges, BYD has effectively managed the competitive pressures and maintained its strong financial performance. 

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