On the evening of March 28, BYD released its 2022 annual report. The announcement shows that BYD achieved operating income of RMB 424.06 billion in 2022, equivalent to approximately USD 64.4 billion, a year-on-year increase of 96.2%; net profit was RMB 6.622 billion, equivalent to approximately USD 2.53 billion, a year-on-year increase of 445.86%.
At the performance meeting today, BYD Chairman Wang Chuanfu said, “Our goal is to become China’s largest automaker by the end of this year.”
In response to the recent price war in the Chinese auto market, Wang Chuanfu stated that “the reason for the price war is the supply-demand imbalance with supply exceeding demand.” Some companies will be eliminated, while others will gain a larger market share. The home appliance, mobile phone, and other industries have all played the game in this way, and new energy and automobiles are no exception. In 2023, the market will also enter an elimination stage. If the supply continues to exceed demand, the price war will continue. Wang Chuanfu also said that the price war has indeed had a certain psychological impact on consumers, but he believes that the impact will decrease by the end of April. As the car exhibitions in various places start in May, market confidence will gradually recover. He believes that in May, China’s auto market will return to a relatively good growth level.
Wang Chuanfu also stated that the demand for Chinese cars in January and February was slightly weaker compared to last year, but BYD still maintained strong growth. The sales volume in January and February increased by about 84.2% compared to the same period last year. Wang Chuanfu said that in a few days, the data for March will be released, and he believes that the sales volume in the first quarter will still maintain a growth rate of over 80% compared to the same period last year.
Wang Chuanfu stated that the DENZA brand has already received more than 50,000 orders, and the high-end YANGWANG brand is targeting the million-yuan sub-market. Although it faces “huge challenges,” it has still achieved good results. China’s new energy vehicle market has entered a comprehensive expansion phase. The demand for battery energy storage is still strong, while the demand for batteries for consumer goods is slowing down, and the demand for global smartphones is still weak.
In addition, Wang Chuanfu revealed that BYD’s semiconductor business IPO plan is still in progress.
