BYD has completed the annual sales target of 3 million vehicles, and the stores may share the cake
Source of this article: Times Finance Author: Wu Kai
On January 1, Sun Shaojun, head of the well-known automobile market research agency Car Fans, revealed that from the same day, BYD began to distribute 3 million sales to all stores. According to it, the stores that have completed the sales task will be issued according to the reward of 666 yuan per car, and the stores across the country have basically completed the task.
BYD Han EV, photo by Times Finance.
On January 2, Times Finance verified the above reward news with a number of BYD sales personnel in Zhejiang, Guangdong, Jiangsu and Beijing markets. The sales staff of the two stores in Jiangsu and Beijing said that they "did not receive this news". A salesperson at a BYD store in Beijing interviewed, said: "We haven't received an official notice, but I think it's unlikely. In his opinion, a car is rewarded with 666 yuan, "the manufacturer (BYD) can't afford to give so much."
Another BYD dealer store salesperson told Times Finance that even if the manufacturer issues incentives, it is only for the stores, and sales should not get bonuses.
Image source: Weibo screenshot
However, two BYD store salespeople in Zhejiang and Guangdong confirmed the above news. A salesperson in Guangdong said that the specific reward amount is based on the real car delivery data in 2023.
In response to the above information, BYD told Times Finance that "I have not heard of (this news)".
In the eyes of some sales staff in dealerships, it is not surprising that BYD issued rewards.
According to the production and sales report released by BYD on January 1, in December last year, BYD sold a total of 341,000 vehicles, a year-on-year increase of 45%, and its monthly sales ranked first among domestic car companies. Throughout the year, BYD sold a total of 3.024 million vehicles, with a year-on-year increase of 61.86%.
In 2023, BYD has achieved the target of 3 million units set by BYD President Wang Chuanfu at the beginning of last year, making BYD the car company with the highest sales volume in the Chinese auto market, surpassing all other car companies and brands. At the same time, BYD has also won the global new energy vehicle sales champion.
While sales have increased significantly, BYD's financial situation will continue to improve in 2023.
BYD's third-quarter financial report shows that BYD's revenue in the first three quarters was 422.27 billion yuan, a year-on-year increase of 57.57%, and BYD's net profit attributable to shareholders of listed companies in the first three quarters was 21.37 billion yuan, a year-on-year increase of 129.47%. BYD explained that the company's new energy vehicle sales continued to hit a record high, which was the key reason for the improvement in performance.
SDIC Securities pointed out that BYD's annual net profit in 2023 is expected to reach 32 billion yuan.
Based on this, even if BYD issues incentives to stores according to the standard of 666 yuan per car, combined with its annual sales of 3.02 million vehicles, the overall reward amount will reach about 2 billion yuan. This figure may be 6.3% of BYD's annual net profit.
In fact, BYD's annual sales include sales in overseas markets, and it is unknown whether it will issue incentives to stores in overseas markets. In overseas markets, BYD sold a total of 36,095 new energy passenger vehicles in December 2023 and 242765 vehicles for the year.
Compared with independent brands such as Great Wall Motor and Chery Automobile, BYD's new energy passenger vehicles entered overseas markets late. In the second half of 2022, BYD began to deploy overseas markets on a large scale. In July 2022, BYD disclosed its overseas NEV passenger car sales for the first time in its production and sales report, when its monthly sales in overseas markets were only 4,026 units.
In the 2023 interim report, BYD said that its new energy passenger vehicles are accelerating into more than 50 countries and regions such as Japan, Germany, Australia, Brazil, and the United Arab Emirates, and the sales of many models are growing rapidly.
In addition, BYD also announced in March, July and December last year that it would start construction of three overseas production bases in Thailand, Brazil and Hungary.
Ji Xuehong, director and professor of the Automotive Industry Innovation Research Center of North China University of Technology, told Times Finance that compared with direct exports to the local area, building factories overseas can effectively reduce logistics and tariff costs, which is conducive to expanding the scale of the local market. At the same time, the construction of overseas factories is also conducive to improving the overseas competitiveness of independent brands.
On January 2, Times Finance asked BYD about its sales target for 2024. As of press time, BYD has not replied to this. However, SDIC Securities pointed out that BYD is expected to launch more models in overseas markets in 2024, which can further promote BYD's profitability and sales growth.