BYD Chairman Wang Chuanfu forecasts falling profit margins in 2024 but remains confident that the company will maintain stable profitability.
Wang predicted that the intensifying price war in China would result in falling profit margins for BYD. According to the China Passenger Car Association’s (CPCA) Secretary General Chi Dongshu, China’s auto sector’s profit margins have fallen to 4.3% from 9.7% in 2015. Based on the CPCA Secretary General’s numbers, BYD might not be the only Chinese automaker to see falling profit margins.
BYD hopes to ensure stable profitability by improving sales. The company is aiming for a 20% sales growth this year. BYD sells pure battery electric vehicles (BEVs) and plug-in hybrids.
During the Bangkok Motor Show in Thailand, BYD stole the limelight with an array of electric vehicles (EVs) and new energy vehicle displays. Among its BEV lineup were the BYD Seagull, BYD Song Max, BYD Seal U, BYD Sealion, and the new BYD Atto 3.
The Chinese automaker also launched electric vehicles under premium brands, including Denza, Fang Cheng Bao, and Yangwang. Each brand has a unique target audience and caters to specific customer preferences.
BYD received 5,345 orders from the vehicles displayed at the Bangkok Auto Show, hinting at a good start to the second quarter of 2024. Between January and March of 2024, the CPCA reported that BYD and all the brands under it sold a total of 1.03 million EVs, up 14.7% year over year. The first quarter of 2024 was the slowest in terms of growth for BYD and its brand since Q2 2023.
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