由 jpichiban 比亚迪上半年利润增长24%，但汽车业务营收仅增长9%，主要原因是价格竞争导致汽车平均售价下降。比亚迪通过推出价格适中的新款车，并扩大海外市场份额，努力维持盈利增长。然而，在海外市场，比亚迪的低价策略引发了一些问题，例如泰国客户对价格下调的不满以及欧盟对中国EV的额外关税。为了应对这些挑战，比亚迪正在扩大海外生产基地，并在中国市场推出搭载高精度传感器和自动驾驶技术的车型，以提升产品竞争力，实现盈利增长。
Original Title: 比亚迪如何从价格战中寻找出路
Summary: BYD’s growth is slowing. While net profit for the first half of 2024 increased by 24% due to cost reductions, automotive revenue only grew by 9% due to price competition initiated by BYD itself. BYD is eager to expand sales of high-performance models and accelerate the construction of a system that can maintain profit growth even in a slowing market.
BYD’s financial report for the first half of 2024, released on August 28, showed that operating revenue increased by 16% to 301.1 billion yuan, and net profit increased by 24% to 13.6 billion yuan. Profits for the first half of the year have increased for three consecutive years.
New vehicle sales increased by 28% to 1.61 million units, with overseas sales of passenger vehicles increasing 2.7 times to 200,000 units. BYD began lowering prices for more than 10 of its main car models in February. The launch of new, moderately priced vehicles in May, such as the plug-in hybrid (PHV) and the fuel-efficient sedan “Qin L” and “Sea Lion 06,” also had a positive impact.
On the other hand, the growth of the automotive-related business, which accounts for 80% of total operating revenue, has become noticeably slower. For the first half of 2024, it reached 228.3 billion yuan, with a growth rate of only 9%. This is a significant slowdown compared to the 91% year-on-year growth in the first half of 2023 and the 2.3-fold increase in the first half of 2022. The average selling price per passenger vehicle has been declining.
The competition surrounding “new energy vehicles” such as EVs and PHVs in the Chinese market is becoming increasingly fierce. BYD, which has launched a large number of models priced around 200,000 yuan, began lowering prices in February, followed by domestic competitors. Data from the China Association of Automobile Manufacturers shows that from January to June, the sales of new energy vehicles in the 150,000 to 200,000 yuan price range were the highest. Sales in this price range during this period reached 1.29 million units, an increase of 16% year-on-year.
BYD Chairman Wang Chuanfu expressed his views on the intense competition in the domestic market at an event in Chongqing in June, saying, “The prosperity of our country over the past 40 years has been accompanied by competition and market development. Through competition, we have seen so many excellent products emerge. This has made our economy soar and our lives have been transformed.”
BYD produces its own car batteries. As vehicle sales have increased, BYD has continuously lowered battery production costs through mass production, ensuring overall profitability. The gross profit margin for the automotive-related business in the first half of 2024 increased by 3.3 percentage points to 23.9%, remaining at a high level. However, due to the burden of increased research and development expenses, the pre-tax profit margin for sales decreased by 0.3 percentage points to 5.6%.
Moreover, BYD’s strategy of expanding sales through low prices has not worked well in overseas markets. In Thailand, due to multiple price cuts on its main models, previous BYD car buyers have expressed dissatisfaction. BYD has been offering one year of free EV charging in the local market since August to address the issue.
In Europe, a major export destination, there is growing concern about low-priced Chinese EVs. The European Commission, the executive branch of the European Union (EU), has argued that Chinese EVs have received government subsidies and are being exported at unfairly low prices, temporarily imposing additional tariffs on Chinese-made EVs starting in July.
The downward trend in growth expectations is reflected in the stock price. Compared to the beginning of 2023, when price competition in China became overheated, BYD’s share price has only risen by about 10% on the Hong Kong Stock Exchange, significantly lagging behind companies like Tesla (approximately 80%) and Toyota (approximately 50%) in the United States.
To avoid overseas tariffs, BYD is rapidly expanding its production network. In Thailand, it launched its first official passenger car factory outside China in July. In Europe, it plans to build a factory in Hungary within three years, and in Turkey, it plans to launch a factory with an annual production capacity of 150,000 units by the end of 2026. In mid-August, plans to build a factory in Pakistan also emerged.
Actions are also being taken in the Chinese domestic market. In early August, BYD launched its first EV equipped with a high-precision sensor “LiDAR” to improve driver assistance functions through its “Ocean” brand. The LiDAR-equipped model starts at 216,800 yuan, which is considered a high price point within the BYD brand.
On August 27, BYD announced the launch of a new car equipped with autonomous driving technology in partnership with Huawei Technologies through its high-end brand “Fang Cheng Bao.” In the future, it will be important to ensure profitability not only by relying on price reductions but also by launching models with improved functions.
Original article: http://cn.nikkei.com/china/ccompany/56562-2024-08-30-09-37-56.html?print=1