This is how BYD makes less money per car

BYD Seal Tesla sales market share advantage — (Photo: Noël van Bilsen)

Last year, China’s BYD managed to sell more than 3 million cars worldwide. But that doesn’t mean the cash register is now full. BYD earns very little revenue per vehicle compared to, for example, Tesla.

BYD is a large car manufacturer from China with many affordable models in its range. Profit margins on cheap cars are generally low. That, along with strict delivery and safety requirements, is one of the reasons why the A segment is slowly dying.

Profit per car: BYD vs. Tesla

The site writes based on statistics from Late Finance CarNewsChina that BYD makes a net profit of 9,000 Chinese renminbi per car. This is equivalent to around 1,167 euros.

Emerging EV brand makes remarkable use: ‘Big red flag’

In comparison: the Volkswagen group made a profit of less than 2,000 euros per car. Tesla even made a profit of 14.9 billion dollars in 2023 and sold 1.81 million cars. That is equivalent to 8,230 dollars (converted to 7,730 euros) per car. It must be said that Tesla does more than just sell cars, but most of its profits are made from EV sales.

BYD dominates in China

The Chinese brand seems to prefer to focus on market share rather than large profit margin. This works in China, where the cheap Seagull is sold, among other things. In its home country, BYD had a market share in the so-called NEV segment in 2023 (New Energy Vehicles) of about 34 percent. Tesla follows in second place with a share of less than 8 percent.

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