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23 AUGUST 2019 AL CIRCLE

BYD reports a 204 per cent rise in profit in H1 2019 driven by the surge in China's NEV market

EDITED BY : BEETHIKA BISWAS 2MINS READ

BYD Co. reported a 204 per cent rise in profit in H1 2019 driven by the surge in China's new energy vehicle market. The automaker funded by U.S. investor Warren Buffett produces battery electric and plug-in hybrid vehicles and also conventional vehicles. The company posted net profit of RMB 1.45 billion (US$205.29 million), up from RMB 479.10 million from the same period of 2018.

BYD

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BYD sold 145,653 new energy vehicles from January to June, up 95 per cent from a year earlier. It also sold 82,419 gasoline models, down 45 per cent YoY. Revenue increased 14.8 per cent to RMB 62.18 billion from RMB 54.15 billion.

BYD plans to shift its new-vehicle lineup to only electric-powered vehicles. The company also announced its decision to develop battery electric vehicles with Toyota Motor Corp last month.

Overall sales of NEVs in China rose 50 per cent in H1 2019 from previous year, but the sales fell 4.7 per cent in July after Beijing cut subsidies on NEVs from July. This was the first sales drop in more than two years. China's Association of Automobile Manufacturers has forecasted further drop in sales with the removal of subsidies.

BYD is of the view that subsidies cut was likely to pressure companies in the industry in the short term, but would promote its healthy development over the long term.

The company will launch models like e2, e3 and a revamped Qin in H2 2019, and expects to drive sales growth and support its leading position in the sector with the new launches.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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