Article | Sina Technology - Luo Ning

In the global automotive industry landscape, the Chinese new energy vehicle market is reshaping the competitive landscape with a rapidly growing share. In the first half of 2024, China's automotive industry has achieved a situation of simultaneous production and sales, especially in the field of new energy vehicles, with both growth rate and market performance continuing to rise.

BYD, as a leading enterprise in the Chinese new energy vehicle market, has just released its 2024 semi-annual report. In the first half of the year, BYD's market share of new energy vehicles further increased to 32.6%, with a cumulative sales of 1.613 million new energy vehicles, ranking first in domestic automobile sales and firmly holding the global new energy vehicle sales.

The semi-annual report shows that in the first half of the year, BYD's total revenue reached approximately 301.127 billion yuan, a year-on-year increase of 15.76%, and the net profit attributable to shareholders of listed companies reached 13.631 billion yuan, a year-on-year increase of 24.4%. Among them, the revenue from the automobile, automobile-related products, and other product businesses was approximately 228.317 billion yuan, a year-on-year increase of 9.33%. In the first half of the year, the revenue from independent brand business grew rapidly, while the revenue from joint venture brands grew weak. BYD's first-half revenue surpassed SAIC Motor Corporation, ranking first among domestic mainstream automobile companies.

It is worth mentioning that in the current situation of intensified competition in the automotive industry, car companies have started a price war. Against this backdrop, BYD's gross margin has been affected to a lesser extent, rising from approximately 18.33% in the first half of 2023 to approximately 20.01%, surpassing Tesla's 18%.

Chinese brand's passenger vehicle market share has exceeded 60%.

In the first half of 2024, the Chinese automotive industry has delivered remarkable results. Under the dual drive of steady macroeconomic recovery and continuous recovery of consumer demand, automobile production and sales have shown a positive growth trend.

New energy vehicle production and sales continue to grow rapidly, and market share is steadily increasing. According to statistics from the China Association of Automobile Manufacturers, as of the end of June this year, the cumulative production and sales of domestically produced new energy vehicles have exceeded 30 million units; Chinese brand's passenger vehicle market share has exceeded 60%, achieving an upward breakthrough.

The China Association of Automobile Manufacturers has released the production and sales situation of the automotive industry. The data shows that from January to June of this year, automobile production and sales reached 13.891 million and 1404.7 million vehicles respectively, with year-on-year growth rates of 4.9% and 6.1% respectively. This growth not only reflects the vitality of the automotive industry, but also reflects the market demand for automotive products.

Against the backdrop of overall growth, the performance of new energy vehicles is particularly impressive. In the first half of the year, cumulative production and sales of new energy vehicles reached 4.929 million and 49.44 million vehicles respectively, with year-on-year growth rates of 30.1% and 32%. The market share reached 35.2%. At the same time, domestic sales of new energy vehicles reached 4.339 million vehicles, a year-on-year increase of 35.1%. The export volume of new energy vehicles reached 0.605 million vehicles, a year-on-year increase of 13.2%.

This significant growth rate is much higher than the overall level of the automotive industry, highlighting the important role of new energy vehicles in driving industry growth.

According to the financial report for the first half of 2024, revenue of BYD reached 301.127 billion RMB, a year-on-year increase of 15.76%, and net income reached 13.631 billion RMB, a year-on-year increase of 24.44%.

Industry insiders believe that the achievement is due to BYD's continuous technological innovation in the field of new energy vehicles. From battery technology to intelligent driving, from lightweight materials to vehicle networking technology, it demonstrates the importance that Chinese car companies attach to new energy technology innovation. At the same time, the performance of joint venture brands in the first half of 2024 is not satisfactory. Due to factors such as intensified market competition, changes in consumer preferences, and supply chain challenges, the revenue growth of many joint venture brands is weak, and some even experienced a decline.

R&D expenditure exceeded 20 billion, ranking first among A-share listed companies.

In the fierce competition in the automotive industry, research and development investment is regarded as a key factor driving product innovation and technological progress, playing a crucial role in enhancing the market competitiveness of enterprises. According to the financial reports for the first half of 2024, major car companies have different focuses on research and development investment.

BYD's research and development investment reached 20.177 billion yuan, a year-on-year increase of 41.64%, reaching a record high. Although SAIC Motor Group has not disclosed specific data, its research and development investment has always been at the forefront of the industry based on previous data. Tesla's global research and development expenses are about 16.1 billion yuan, continuing to drive the development of electric vehicles and autonomous driving technology. Geely Auto's research and development expenses are about 4.5 billion yuan, mainly focusing on intelligent connectivity and new energy vehicle technology. Great Wall Motor's research and development investment is about 4 billion yuan, focusing on the development of intelligent driving and new energy technology.

According to data from the China Association of Listed Companies, there were 1,161 listed companies on the A-share market with research and development investment exceeding 0.1 billion yuan in the first half of 2024. Among them, BYD ranked first with a research and development investment scale of 20.177 billion yuan, followed by China State Construction Engineering Corporation and China Mobile.

It is understood that BYD's research and development personnel have exceeded 0.1 million, ranking first among global car companies. Its research and development investment is mainly focused on battery technology, drive systems, and intelligent connectivity, among other key areas. The conversion of research and development investment into technological reserves has made BYD the most technologically capable automaker in the new energy vehicle era.

It is worth mentioning that over the 13-year period from 2011 to 2023, BYD's research and development investment exceeded the net income for 12 years. As of now, BYD has accumulated nearly 150 billion in research and development investment.

According to the latest data from Yiche Ranking, BYD's sales volume in July has risen to third place globally, behind only Toyota and Volkswagen. Previously, according to data from MarkLines, in the second quarter of this year, BYD's sales volume surpassed Honda to become the seventh largest global automaker.

According to the latest data from Yiche Ranking, BYD's sales volume in July has risen to third place globally, behind only Toyota and Volkswagen. Previously, according to data from MarkLines, in the second quarter of this year, BYD's sales volume surpassed Honda to become the seventh largest global automaker.

Industry experts pointed out that "the emphasis on research and development by Chinese automakers is not only reflected in the progress of their products and technologies, but also reflects the trend of consumption upgrade in the Chinese automotive market. Consumers are increasingly inclined to choose cost-effective and technologically advanced products from domestic brands, which is a positive signal for all domestic brands."

Other experts believe that through continuous technological innovation and investment in research and development, especially in the areas of new energy vehicles and intelligent driving technology, Chinese automakers are driving the entire industry towards a more efficient, eco-friendly, and intelligent direction, while also contributing to the sustainable development of the global automotive industry.