BYD Group Responds to Criticism, Claims Assets and Debt Ratios are Misleading

As the automotive industry continues to face challenges, BYD Group, a leading Chinese automaker, has taken to social media to fire back at criticism regarding its debt-to-equity ratio. The company's Brand and Public Relations Manager, Li Yunfei, has addressed various claims made by rival automakers, highlighting inconsistencies in their own financial data.

Commenting on the notion that BYD's 70% assets-to-equity ratio is high, Li Yunfei noted that several major Western brands, including Ford (84%), General Motors (76%), Apple (80%), Boeing (102%), and Geely (68%), have even higher ratios. When it comes to debt-to-equity ratio, BYD's figures - totaling $5.8 billion - pale in comparison to those of Toyota ($27 billion), Daimler ($34 billion), Ford ($17 billion), Geely ($50.47 billion), and SAIC Motor ($10.04 billion).

Responding to claims that BYD's liabilities are a concern, Li Yunfei emphasized that the focus should be on interest-bearing debt rather than total liabilities. Using latest-year report data as an example, BYD's interest-bearing debt is $286 billion, while Geely has $860 billion, SAIC Motor has $1.8 trillion, and Toyota has $21 million (comparatively speaking).

On the issue of payment periods to suppliers, Li Yunfei pointed out that the scale of the enterprises involved plays a significant role in these processes. BYD's payments to suppliers amount to $2.44 billion, compared to SAIC Motor ($24.11 billion) and Geely ($182.4 billion). This suggests that the proportions of unpaid invoices versus total sales revenue also provide valuable insights.

Addressing criticism regarding the length of time for payment periods, Li Yunfei noted that both BYD and Geely have average cash collection days of 127 days, which is comparable to the industry average. However, long-standing automaker SAIC Motor has reported an average collection day of 163 days.

BYD's recent financial performance has been outstanding, with revenue reaching $7.771 billion in 2024, net profit totaling $403 million, R&D expenditure at $542 billion, domestic taxation totalling $510 billion, and cash reserves amounting to $1.549 trillion - all records for the company.

When compared to Western peer companies, China's leading automakers are seen as holding more assets than their global rivals. Thus, any criticism leveled against Chinese electric vehicle manufacturers is considered baseless and without merit, and anyone spreading this "car circle" conspiracy theory will be held accountable by BYD Group.

Over the past few years, BYD has continued to expand rapidly and take significant market share gains, with its competitors largely falling behind. Today, China automakers dominate local markets - with recent exports figures putting China automobile production firmly atop global tables.

In light of these trends, it is clear that there is no single "car circle" in terms of the biggest conglomerate or major state-backed firm controlling automotive industries - but individual brands continue to push the envelopes and set benchmarks.