Tesla Inc (NASDAQ:TSLA) rival BYD Co, China's biggest electric vehicle (EV) maker, has said its third-quarter net profit likely more than quadrupled as it extends its sales lead over the US EV giant in the world's largest auto market, Reuters has reported.
BYD estimated net profit for the July-September quarter to come in between 5.5 billion yuan and 5.9 billion yuan ($765 million to $820 million) - an increase of 333% to 365% from the same period a year earlier, the newswire said.
Robust sales and a product range broader than other EV competitors allowed BYD - which is 19% owned by Warren Buffett's Berkshire Hathaway - to significantly reduce costs per vehicle, while an improved product mix led by vehicles such as its upmarket Han sedan also helped drive earnings, Reuters noted.
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Having ditched gasoline vehicles from its product mix this year, BYD has, more than any other automaker, been able to capitalise on a range of incentives for electric cars offered by the Chinese central government as well as local governments.
BYD's combined sales of pure electric and hybrid plug-in vehicles increased 250% in the first nine months to 1.2 million units, outpacing a 110% rise for the overall EV segment.
By comparison, Tesla sold just over 318,000 electric vehicles in China during the first nine months of the year. Tesla will report its third-quarter results after the New York market close on Wednesday.
The China Association of Automobile Manufacturers has estimated that EV sales in China will increase by about 56% this year to 5.5 million units - a market far greater than most countries' entire auto sales.
EVs are also expected to account for 20% of overall China vehicle sales this year, up from 13.6% in 2021, the industry association said.
Some subsidies for electric vehicles are set to expire this year although the government has extended an exemption of the purchase tax for EVs to the end of 2023, Reuters noted.
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