BYD, the world-leading Chinese group in the electric vehicle sector, recorded record profit in 2023, up 80.7% to 30.04 billion yuan (4.16 billion dollars) in line with forecasts at the end of January (29 -31 billion yuan), thanks to the boom in demand for electrically powered cars.
This is what the company reported in a note to the Shenzhen Stock Exchange, a few months after overtaking Elon Musk's Tesla as the world's top seller in the sector.
The company - 'Biyadi' in Chinese or the English slogan 'BuildYour Dreams' - has been raking in profits despite China's uncertain economy and domestic competition.
Founded in 1995, the company initially specialized in the design and production of batteries before moving into the automotive sector in 2003. Close government cooperation in Shenzhen - where the public bus fleet has already completely switched to electric models - has given a major boost to BYD's activities.
The high production volume allows the company to aggressively price its vehicles and keep pressure on struggling electric vehicle startups, including Tesla.
Last year BYD became the first manufacturer to surpass the milestone of five million hybrid or fully electric vehicles sold, crowning itself as the world's leading producer of new energy vehicles.
Many foreign auto giants, including Tesla, BMW, Mercedes and Audi, depend on BYD for their batteries, which has long benefited from generous subsidies from Beijing for electric vehicles.
Between 2014 and the end of 2022, the Chinese government said it spent more than 200 billion yuan ($28 billion) in subsidies and tax breaks on the purchase of electric vehicles alone, giving domestic companies a key advantage in the race to supply vehicles electric cars that are cheaper and more fuel efficient than the main US and European car manufacturers.
Demand for electric vehicles has soared in recent years in China, which is the world's largest emitter of polluting greenhouse gases.
The presence of Warren Buffett, the Oracle of Omaha, among the shareholders also increases the appeal of Byd.
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