Chinese electric vehicle maker BYD reported an improved net profit of 9.1 billion yuan ($1.3 billion) in the April-June quarter. This represents a 32.8% increase from a year earlier, marking its fastest growth since the end of 2023, as detailed in a stock exchange filing.
The company's revenue also saw a significant increase, growing by 25.9% to 176.2 billion yuan during the second quarter. This growth occurred despite BYD's aggressive discounting strategy, which led a protracted price war in the EV market.
Sales of autos and related products constituted 75.8% of BYD's total revenue, with their gross margin rising to 23.9% in the first half of 2024. This was an increase of 3.3 percentage points compared to the same period last year. However, the gross margin for the second quarter specifically fell to 18.69% from 21.88% in the first quarter, according to Reuters' calculations.
