Chinese automotive giant BYD has seen a remarkable surge in its financial performance, with its fourth-quarter profits reaching new heights, signaling its growing dominance in the electric vehicle (EV) market.
On March 24, 2025, BYD reported a record net income for the fourth quarter of 2024 of RMB 15.02 billion ($2.1 billion), an impressive increase of 73.12 percent from the previous year and a 29.37 percent uplift from the previous quarter. This growth was primarily attributed to a record-breaking sales performance in new energy vehicles (NEVs), with BYD selling 1,524,270 units in the fourth quarter alone, marking a year-on-year increase of 61.34 percent and a quarter-on-quarter increase of 34.31 percent.
The company’s overall revenue also saw extraordinary growth, reaching RMB 274.85 billion ($37.89 billion) in the same quarter, which is a 52.66 percent year-on-year increase and a 36.66 percent rise compared to the third quarter. For the full year of 2024, BYD reported a total revenue of RMB 777.1 billion, surpassing the $100 billion threshold for the first time, positioning it as a formidable competitor to Tesla, which reported $97.7 billion in revenue for the same period.
Despite the impressive revenue figures, BYD's gross margin faced challenges. The company's gross margin fell to 17.01 percent in the fourth quarter, down 4.88 percentage points from 21.89 percent in the previous quarter. This decline reflects the increased operating costs, which were adjusted in the annual report according to new accounting standards. Specifically, the operating cost for 2023 was increased from RMB 480.56 billion to RMB 490.40 billion, influencing the gross margin to stand at 15.76 percent for the quarter, compared to the previously reported figure of 21.22 percent.
The report also highlighted BYD's operating cash flow, which amounted to RMB 77.18 billion in the fourth quarter, representing 57.8 percent of its annual operating cash flow. This solid cash flow has enabled BYD to plan for further investments, as the company intends to allocate up to RMB 60 billion of its idle funds into wealth management products.
In addition, BYD announced its intention to distribute a cash dividend of 39.74 yuan per ten shares, reflecting the confidence in its sustained profitability. The company has positioned itself aggressively in the EV market, launching innovations such as advanced driver assistance systems and charging technology that can add 400 km of range in just five minutes.
As of 2024, BYD's total vehicle deliveries reached 4.27 million, closely trailing behind industry giants like Ford. Looking ahead, BYD aims to sell between five and six million vehicles in 2025, with early indicators showing a robust start; sales surged by 93 percent in January and February, totaling 623,300 units.
BYD's growth has not gone unnoticed by the market, as its shares rose by 51 percent year-to-date. These advancements highlight the company’s push to outpace Tesla, which continues to lead in market valuation, valued at approximately $800 billion, while BYD's market is around $157 billion.
In summary, BYD's financial results not only reflect a promising future for the company but also underscore its rapid ascension in the competitive EV landscape. With plans for expansion and product innovation, BYD is carving out a significant share of the market.
