BYD's robust performance in 2023 cements its position as a leader in the global new energy vehicle market.
On March 26, BYD unveiled its 2023 annual financial report, demonstrating the company's strong financial performance. According to the report, BYD achieved a total revenue of 602.3 billion yuan, marking a 42% year-on-year increase, with a net profit of 30 billion yuan, representing an impressive 81% year-on-year growth. The automotive-related business experienced rapid expansion in 2023, accounting for 80.27% of the total revenue, with an overall sales volume of 3.02 million vehicles, exceeding 60% growth compared to the previous year.
BYD's remarkable financial results in 2023 were primarily attributed to the rapid growth of its automotive business. According to data from the China Association of Automobile Manufacturers, BYD's market share in the new energy vehicle (NEV) segment reached 31.9% in 2023. In November 2023, BYD became the first company globally to achieve cumulative NEV sales of 6 million units, maintaining its leadership position in the global NEV market. Additionally, in the pure electric vehicle (EV) segment, BYD surpassed Tesla for the first time, becoming the world's largest pure EV manufacturer.
Benefiting from continuous investment in overseas sales networks and production facilities, the company witnessed a rapid momentum in overseas markets, with NEV sales reaching 242,800 units, a remarkable increase of 334.2% year-on-year. Furthermore, the introduction of a series of high-end models such as the DENZA N8 and the Yangwang U8 Luxury Edition has provided strong support for BYD's expansion into the high-end market.
In addition to market support, BYD's leading technology and cost control capabilities have also served as significant advantages in global market. Despite facing challenges such as intense competition and policy changes, the company has maintained profitability in its NEV business through its strong brand reputation, growing international sales, economies of scale, and effective cost control, further aided by the decline in raw material prices.
According to estimates from Huatai Securities, BYD is expected to further enhance its gross profit margin and net profit level in the future. The company projects gross profit margins of 19%, 20%, and 21% for the years 2023, 2024, and 2025 respectively, with net profits attributable to shareholders reaching 26.88 billion yuan, 39.18 billion yuan, and 52.20 billion yuan. With continued investment in technological innovation and product upgrades, BYD's profit potential is expected to expand further in the future.