Its 1QFY2023 earnings surged by 411% to RMB4.1 billion. “We believe better revenue mix and scale effect could have played a part in mitigating some of the margin erosion impacts,” says Rachel Miu of DBS Group Research. In contrast, Tesla suffered a 22% decline in nonGAAP earnings due to the multiple price cuts, says Miu.
As a leading car maker, BYD faces tough competition from international and local rivals. Yet, it was able to charge ahead, selling 90% more vehicles for its most recent 1QFY2023 ended March and generating sales of RMB120 billion ($22.3 million), up 80% y-o-y.
In 1QFY2023, BYD’s selling expenses were up 135% y-o-y in its bid to compete. While the top line was within expectations, BYD delivered a “pleasant surprise” with a 5.5 percentage point y-o-y increase in its gross margin to 17.9% for the quarter, although q-o-q, the margin dipped slightly.
