Chinese EV Giant BYD Reports Record $1.4B Quarterly Profit Amid Global Expansion and Intense Factory-to-Battery Integration

BYD's record profits driven by high demand for their value-for-money EVs, strategic control over supply chains, increased focus on research and development and aggressive global expansion plans, despite intensifying price war in the EV market.

• China's largest EV maker, BYD, reported record quarterly net profit of $1.4 billion for the third quarter, an 82.2% increase compared to the previous year. This growth is despite a decreasing demand and intensified competition in the industry.
• BYD's aggressive research and development efforts contributed to this growth, with the company investing approximately $3.4 billion so far this year, marking a 130% increase in spending. Additionally, it invested over $13 billion to enhance its production capacity for cars and batteries.
• Despite price cuts by dominant EV manufacturers including BYD and Tesla to maintain their market position, BYD managed to post record profits in Q3. The company's sales reached 431,603 EV units in Q3 alone, inching it closer to Tesla’s third-quarter delivery count of 435,059 EVs.
• BYD, which has a fully integrated supply chain ranging from raw materials to battery packs, was able to uphold strong control over its scaling and supply chain costs which led to a profit surge in Q3. Overseas sales also contributed to this growth, accounting for 8.7% of the total in the last quarter, compared with 3.1% a year ago.
• Looking at the broader impact, BYD's robust performance resulted in a decline of about 3% in both its Shenzhen- and Hong Kong-listed shares. The company continues to increase its global footprint by establishing a presence in overseas markets like Thailand, Brazil, and Columbia among others.

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