Yesterday (December 18), Counterpoint, a global passenger car model sales tracking agency, released a press release: "Global Pure Electric Vehicle Sales: Chinese Players Are Far Ahead".
According to the article: In the third quarter of 2023, global pure electric vehicle sales increased by 29% year-on-year.
In the U.S. market, OEM automakers produce more than they sell, resulting in overstocked inventory.
Global BEV sales are expected to reach nearly 10 million units in 2023.
Global BEV sales increased by 29% year-on-year in the third quarter of 2023, driven by expanding markets in Europe and Southeast Asia. China maintained its position as the world's largest market for BEVs, while overcoming the global macroeconomic environment, with sales growth of 11% in the third quarter. Not only that, Chinese brand electric vehicles have successfully sold more than 130,000 pure electric vehicles in foreign markets, a fourfold increase compared to the third quarter of 2022. Tesla, BYD Auto, and Volkswagen are the best-selling BEV groups. BYD Auto (excluding Denza) has caught up with Tesla and is expected to surpass Tesla in the fourth quarter to dominate the global market.
The chart above shows that in the third quarter of 2023, in the global pure electric passenger car market, BYD increased by 68% year-on-year, tied for first place with Tesla with a market share of 17%, and Volkswagen, Geely, GAC Trumpchi, Hyundai, and SAIC ranked third to seventh.
"China still accounts for 58% of the global BEV market, with the US accounting for about 12%. Germany is the third largest market for battery electric vehicles, with an annual growth rate of more than 60 percent. As a result of the reasonable, the market size of pure electric vehicles in emerging economies such as India and Southeast Asia is also on the rise.
Throughout 2023, the U.S. market has expanded significantly. Despite a 63% year-over-year increase in U.S. BEV sales in the third quarter, automakers are cutting EV-related expenses as customers are reluctant to pay extra for BEVs. Ford has decided to postpone its $12 billion investment in electric vehicles. Similarly, General Motors has decided to cancel the production of electric vehicles and postpone the launch of new electric vehicle models. GM also canceled plans to partner with Honda to produce electric vehicles for less than $30,000. ”
Tesla Model Y is the world's best-selling model, followed by BYD Yuan Plus (ATTO 3), Tesla Model 3 in third place, BYD Dolphin and Seagull, which only launched this year, in fourth and fifth place, respectively.
BYD: More than 300,000 units in a single month, and it is expected to exceed 3 million units for the whole year
In November, BYD's total sales exceeded 300,000 units, reaching 301903 units, including 301378 passenger cars, and the annual cumulative sales reached 26720,000 units, and the annual sales are expected to exceed 3 million.
According to the latest data from the China Automobile Association, from January to November, China's new energy vehicle exports were 10910,000 units, a year-on-year increase of 835%。Among them, BYD has exported a total of 2160,000 units, a year-on-year increase of 360%, ranking first in terms of growth rate. In November alone, BYD exported 30,629 vehicles, and exports are expected to exceed 250,000 units for the whole year.
From the perspective of market distribution, BYD's new energy vehicles have spread to more than 70 countries and regions around the world, more than 400 cities, and have become the sales champion in six countries, including Brazil, Thailand, Singapore, Colombia, Malta, and Costa Rica.
In the first three quarters of this year, BYD's revenue exceeded 420 billion yuan, and its net profit reached 21.3 billion, a year-on-year increase of nearly 130%, and more importantly, BYD's net profit in the third quarter reached 10.4 billion yuan, and its single-quarter profit exceeded 10 billion for the first time.
BYD's net profit is approaching Tesla, according to Tesla's third-quarter financial report, Tesla's revenue in the third quarter was 170 billion yuan, and the net profit was 13.9 billion yuan, down 44% year-on-year, and the profit level is still declining.
In terms of gross profit margin, BYD surpassed Tesla for the first time, Tesla's gross profit margin in the third quarter of this year was about 18%, while BYD's gross profit margin was 22%, and high-end business and export business became the main driving force for BYD's profit rise.
BYD's market capitalization is grossly undervalued
Although BYD's sales are about to surpass Tesla's, in terms of the performance of the capital market, as of the close of the market on December 19, the total market value of BYD's domestic A-shares and Hong Kong stocks is about 11 trillion yuan, the price-earnings ratio is only 19 times, while Tesla's market value in the US stock market is as high as about 5 trillion yuan, the price-earnings ratio is as high as 74 times, and BYD's market value is only 1 5 times that of Tesla.
Is BYD's market value seriously undervalued?