Annual net profit of Chinese EV giant BYD up 446%

Chinese battery and electric vehicle manufacturer BYD announced Tuesday a net profit in 2022 of 16.6 billion yuan ($2.4 billion), up 446 percent year-on-year.

China, the world’s largest overall producer of greenhouse gases, plans for domestic car sales to be mainly made up of electric and hybrid vehicles by 2035.

The result is in line with forecasts issued in January by BYD of between 16 and 17 billion yuan.

BYD also reported an 11-fold rise in profit during the fourth quarter of last year, further asserting its lead in the country’s competitive electric vehicle (EV) sector.

Originally specialising in the design and manufacture of batteries, the Shenzhen-based firm began diversifying into the automotive sector in 2003.

It ceased production of gasoline cars last year and now focuses exclusively on hybrid and electric models.

BYD, an acronym for “Build Your Dreams”, has swelled to become the most prominent Chinese manufacturer of EVs.

The company remained the biggest seller of hybrid and electric cars in China in February with 191,664 units sold — far ahead of its US competitor Tesla, which reported around 75,000 units sold during the period.

Many other local brands, including SAIC-GM-Wuling, Geely, XPeng and Nio, compete with Tesla and other foreign manufacturers for a share of China’s EV market.

Sales of hybrid and electric models practically doubled in China last year to represent more than a quarter of vehicles sold, according to the China Passenger Car Association.

But experts warn the discontinuation in January of government subsidies for the purchase of new energy vehicles is expected to lead to a slowdown in sales this year.

In response, several Chinese manufacturers have entered into a price war in recent weeks. — Agence France-Presse

IMF calls for carbon pricing to aide energy transition

Carbon pricing will be needed to help finance the global transition to renewable energy, the International Monetary Fund’s second-most senior official said Wednesday, warning against escalating the use of “green” subsidies.