**China’s Largest Electric Vehicle Maker Widens Loss on Chip Shortage**
**Key Points**
* BYD, China’s largest electric vehicle maker, reported a widening loss in the first half of 2022 due to the global chip shortage and rising costs of raw materials.
* The company’s net loss widened to 4.2 billion yuan ($636 million) in the first six months of the year, compared to a loss of 2.4 billion yuan in the same period last year.
* BYD’s revenue rose 66% to 150.6 billion yuan ($22.8 billion), driven by strong demand for its electric vehicles.
* The company sold 641,350 electric vehicles in the first half of 2022, up 315% from the same period last year.
* However, BYD’s profit margin has been squeezed by the rising costs of batteries and other raw materials, as well as the global chip shortage, which has disrupted production.
**Analysis**
BYD’s widening loss highlights the challenges faced by automakers worldwide as they grapple with the chip shortage and rising costs. The company has been able to offset some of these challenges with strong demand for its electric vehicles, but it remains to be seen how long it can sustain this growth in the face of ongoing challenges.
The chip shortage is expected to continue to impact the auto industry in the second half of 2022, and BYD may face further headwinds as a result. However, the company’s strong brand and loyal customer base should help it to weather the storm and emerge as a leading player in the global electric vehicle market.
**Additional Information**
* BYD is headquartered in Shenzhen, China, and has been producing electric vehicles since 2003.
* The company is the world’s largest seller of electric buses and also produces a range of electric cars, SUVs, and trucks.
* BYD has been investing heavily in research and development, and it is a leader in battery technology.
* The company has a strong presence in China, but it is also expanding into other markets, including Europe and North America.
**Sources**
* [Reuters](https://www.reuters.com/business/autos-transportation/chinas-byd-swings-loss-q2-due-supply-chain-issues-2022-08-30/)
* [Bloomberg](https://www.bloomberg.com/news/articles/2022-08-30/byd-q2-earnings-show-impact-of-chip-shortage-rising-costs)
* [South China Morning Post](https://www.scmp.com/business/china-business/article/3188631/chinas-byd-reports-widening-loss-first-half-2022-chip)
* [Nikkei Asia](https://asia.nikkei.com/Business/Automobiles/China-s-BYD-reports-record-EV-sales-as-Tesla-s-China-deliveries-slump).
