BEIJING (Reuters) - In an astonishing leap, Chinese electric vehicle titan BYD reported a remarkable 73.1% surge in its net profit for the fourth quarter of 2024, reaching an all-time high of 15 billion yuan (approximately $2.1 billion). The company attributed this impressive growth to strategic price reductions and superior sales performance compared to its rivals.

For the entire year, BYD posted a profit increase of 34%, totaling 40.3 billion yuan, fueled by a revenue growth of 29%. Fourth-quarter revenue alone soared by 52.7%, hitting 274.9 billion yuan, showcasing BYD’s robust market position and expanding consumer base.

The company’s stock has seen explosive growth this year, with a 51% rise in Hong Kong markets, just shy of the record highs reached last week. BYD has officially dethroned Volkswagen, becoming the best-selling car brand in China with a staggering sales volume of 4.25 million vehicles in 2024.

One key to BYD's success has been its focus on introducing affordable EV models, intensifying the ongoing two-year price war in the competitive Chinese auto market. Additionally, they have stirred excitement in the industry by launching an innovative super-charging EV technology platform. In a bold move, the company also announced that it will equip most of its vehicles with advanced smart driving features at no additional cost to customers.

In a breakdown of their operations, BYD noted that sales from automobiles and related products constituted 79.4% of their operating revenue, yielding a gross profit margin of 22.3%, which is a notable increase of 1.3 percentage points from the previous year.

This month, the Warren Buffett-backed manufacturer announced it had successfully raised $5.59 billion through a primary share sale, initially set at a lower amount. The proceeds are earmarked for research and development initiatives as well as expansion into international markets.

Additionally, BYD is reportedly eyeing Germany as a potential location for its third plant in Europe. The company’s overseas shipments surged by 71.9% last year, representing 10% of its total vehicle sales, indicating a strong and growing presence in global markets.

As BYD continues to innovate and capture market share, industry analysts are watching closely to see how these developments will influence the future of the electric vehicle market in both China and beyond. Will BYD maintain its lead, or are rivals gearing up for a comeback? Stay tuned!

($1 = 7.2520 Chinese yuan renminbi)