CHINA's biggest electric vehicle maker byd has posted higher quarterly revenues than US rival Tesla for the first time, reports London's Financial Times.
But a bruising price war in China's domestic market has dragged on profitability. Yet BYD revenues for the third quarter reached CNY201 billion (US$28.2 billion), surpassing the $25.2 billion sales that Tesla reported last week.
The Warren Buffett-backed carmaker sold a record 1.1 million cars in the three-month period, boosted by a new round of Chinese government subsidies for EVs.
But the 24 per cent increase in sales came at the expense of BYD's gross margins, which slipped from 22.1 per cent last year to 21.9 per cent. Net income was CNY11.6 billion, rising 11.5 per year on year.
Instead of directly offering discounts, BYD has in recent months launched longer range models equipped with more advanced features at lower prices than their old versions.
The strategy has helped it cement its market leadership amid fierce price competition but pulled down the group's net profit per vehicle, analysts said.
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But a bruising price war in China's domestic market has dragged on profitability. Yet BYD revenues for the third quarter reached CNY201 billion (US$28.2 billion), surpassing the $25.2 billion sales that Tesla reported last week.
The Warren Buffett-backed carmaker sold a record 1.1 million cars in the three-month period, boosted by a new round of Chinese government subsidies for EVs.
But the 24 per cent increase in sales came at the expense of BYD's gross margins, which slipped from 22.1 per cent last year to 21.9 per cent. Net income was CNY11.6 billion, rising 11.5 per year on year.
Instead of directly offering discounts, BYD has in recent months launched longer range models equipped with more advanced features at lower prices than their old versions.
The strategy has helped it cement its market leadership amid fierce price competition but pulled down the group's net profit per vehicle, analysts said.
SeaNews Turkey
