The Chinese electric vehicle manufacturer BYD surpassed 100 billion US dollars in revenue for the first time in 2023, establishing itself as a dominant force in the world's largest automotive market. The Shenzhen-based group reported a 29 percent increase in revenue to 777 billion Renminbi (about 107 billion US dollars), exceeding market expectations and achieving a profit jump of 34 percent to 40 billion Renminbi.

In contrast to US rival Tesla, which relies solely on pure electric vehicles, BYD benefits from the renewed interest of Chinese consumers in plug-in hybrids. Analysts see this as a crucial competitive advantage, as BYD can react more flexibly to market developments. "Leading manufacturers like BYD have now moved away from a volume-driven price campaign and are increasingly focusing on more profitable model maintenance and technology upgrades," said Serena Shen of S&P Global Mobility.

The share price reaction was particularly strong to the announcement of a novel fast-charging technology. Founder Wang Chuanfu presented a system last week that is supposed to allow electric cars to be fully charged in five minutes. The stock then climbed to a record high and is up 91 percent year-on-year. On Monday, it closed 3 percent higher in Hong Kong at 403.40 HK dollars.

BYD has also accelerated its expansion strategy outside of China. In 2023, the company sold over 400,000 vehicles abroad – one-tenth of its total sales of more than 4 million units. Just last month, BYD secured around 6 billion US dollars to finance international growth and opened new production facilities in Thailand and Uzbekistan last year. In the first two months of this year, 16 percent of all car exports from China were accounted for by BYD.

With a broad portfolio of cleantech solutions—from lithium-ion batteries and solar modules to energy storage systems—BYD is considered a flagship of the Chinese tech industry. However, this role also causes geopolitical tensions: The EU has imposed anti-dumping tariffs on electric cars from China due to possible competitive distortions from Chinese subsidies.

In addition, international expansion projects are under scrutiny. In Brazil, construction of a plant was halted in December after local authorities criticized inhumane working conditions. BYD subsequently parted ways with a Chinese subcontractor and stated that they do not tolerate any violations of laws or fundamental rights.