- Things may be grim in the U.S., but China's BYD has seen a nice bump in profit in 2010.
- However, the second quarter was a drag on profitability, as car sales slowed.
- Additionally, BYD reduced its full-year sales target to 600,000 units this month.
SHANGHAI, China — China's top EV and battery-electric vehicle producer, BYD, announced that its net profit in the first half of this year more than doubled from a year earlier, despite a cooling auto market that dampened its second-quarter results.
In a filing with the Hong Kong stock exchange, BYD reported its net income totaled $353 million from January to June. Its revenue also grew to some $3.5 billion during the same period, a 50 percent gain from a year earlier.
However, net profit for the second quarter of this year plunged 58 percent to $105.9 million, while revenue dipped 8.4 percent to $1.7 billion
"In the second quarter (being the off-season for the auto market and as a result of the effect of the national macroeconomics control policies on the real estate industry and stock market), consumers were less willing to spend on non-necessities, therefore the growth in demand for automobiles slowed," said BYD Chairman Wang Chuanfu.
Shenzhen-based BYD, backed by billionaire Warren Buffett, sold 286,000 units in the first half of this year, up an annual 57 percent. It's worth noting, however, that BYD had originally hoped to sell 800,000 vehicles in 2010 but then scaled back its forecast to 600,000 units when consumer demand weakened.
Its auto business boosted revenue by 46 percent to $1.9 billion in the six-month period.
Inside Line says: Despite ups and downs, BYD's prospects look nothing short of electric in the long term. — Vivian Jin, Correspondent
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dagmar3 says:
05:54 AM, 08/25/2010
How can BYD be known as "China's top EV and battery-electric vehicle producer" when they sold only 18 of the plug-in hybrid F3DM models in the first six months of this year? Only one in 12,900 sales were their plug in electric. In July, the FD3M sales shot up to a whopping 32 units thanks to massive government subsidies. BYDs all-electric E6, also heavily subsidized, saw sales of 17 units for the month.
This is proof that there is no demand for these types of cars.
This isn't a news story; it's propaganda.
Sources:
http://www.chinacartimes.com/2010/08/04/byd-lowers-sales-goal-for-2010/
http://autonews.gasgoo.com/china-news/byd-sales-fall-6-fourth-consecutive-monthly-drop-100809.shtml
windsor5 says:
11:07 PM, 08/24/2010
proof that there is demand for these types of cars..... why is china leapfrogging us??????