BYD’s Auto Insurance Unit Reports Strong Q2 2024 Performance
Key Points:
- BYD‘s Auto Insurance Business: Launched in May 2024 through an acquisition.
- Shenzhen BYD Property & Casualty Co Ltd: The auto insurance arm of BYD (HKG: 1211, OTCMKTS: BYDDY) releases its first financial report.
- Q2 2024 Financials:
- Net Income: RMB 6.04 million ($850,000).
- Insurance Revenue: RMB 67.26 million.
- First Half 2024 Financials:
- Total Insurance Revenue: RMB 67.26 million.
- Net Income: RMB 18.46 million.
- Total Assets: RMB 3.69 billion as of the end of Q2 2024.
- BYD’s Vehicle Sales:
- First Half 2024: 1,955,366 vehicles, up 28.83% YoY.
- Q2 2024: 986,720 NEVs, up 40.25% YoY and 57.56% from Q1 2024.
- Competitor Move: Tesla (NASDAQ: TSLA) registered an insurance brokerage in China in late July 2024.
Detailed Report:
BYD, China’s leading New Energy Vehicle (NEV) manufacturer, established its own auto insurance business via acquisition earlier this year. Shenzhen BYD Property & Casualty Co Ltd, the newly formed insurance arm of BYD, has released its inaugural financial report, highlighting the performance since its operational launch in May 2024.
According to a report dated July 30 and published by the Insurance Association of China, the BYD insurance unit achieved a net income of RMB 6.04 million ($850,000) in the second quarter of 2024, with insurance business revenue reaching RMB 67.26 million.
During the first half of 2024, BYD Property & Casualty generated total insurance business revenue of RMB 67.26 million, recording a net income of RMB 18.46 million. As of the end of the second quarter, the company held total assets valued at RMB 3.69 billion.
BYD, known for being the largest NEV maker in China, reported a significant increase in vehicle sales, with 1,955,366 vehicles sold in the first half of 2024, including both passenger cars and commercial vehicles, marking a 28.83% year-over-year growth.
In the second quarter alone, BYD sold 986,720 NEVs, representing a 40.25% increase compared to the same period last year and a 57.56% increase from the first quarter of 2024.
Meanwhile, BYD’s competitor Tesla registered an insurance brokerage in China in late July 2024, indicating potential competition in the auto insurance market. Tesla had sought regulatory approval to sell insurance products in China over three years ago but recently canceled a previous registration.
