SHANGHAI (Reuters) – Chinese electric car maker BYD Co Ltd posted 203.6% increase in first-half profit on Wednesday, as China’s new energy vehicle market is continuing to surge.
FILE PHOTO: A woman walks past a BYD sign on the second media day of the Shanghai auto show in Shanghai, China-April 17, 2019 at the latest. REUTERS/Aly Song
The Shenzhen-based company, which is backed by U.S. investor Warren Buffett, whose products include battery-electric and plug-in hybrid electric vehicles, posted a net profit of 1.45 billion yuan ($205.29 million, an increase of 479.10 million yuan, a year earlier.
BYD sold 145,653 so-called new energy vehicles (NEVs), from January to June, up 94.5% from a year earlier. It is also sold 82,419-fuel cars, down 44.9%.
Its sales increased 14.8% to 62.18 billion yuan, of 54.15 billion.
BYD, in which the models are fitted with the Song series as well as for the Qin plug-in hybrid electric vehicle, wants to move to all-electric vehicles. He said last month it would develop a battery-electric vehicles (EVs) with the Toyota Motor Corporation.
The total sales of NEVs in China has increased by 49,6% during the first six months of this year from a year earlier, but sales declined by 4.7% in July, the first decline in more than two years, China cut subsidies for such vehicles as of mid-July.
The China Association of Automobile Manufacturers, has trimmed its forecast for the result for NEV sales this year to 1.5 million from 1.6 million.
BYD, which has a joint venture with Daimler ag, said the subsidies were cut, was likely to push firms into the industry in the short term, however, it would be to promote the healthy development of the long-term.
BYD will be launching models such as the e2, e3, and a new Qin in the second half of this year, and it is expected that the new models will continue to drive the growth of the sales and support of the leadership in the industry, the submission said.
China is considering the offer of a beneficial treatment for the different vehicle technologies, including gasoline-electric hybrid vehicles, as a way of diversifying the environment-friendly vehicle in the middle of a larger push to go green.
Reporting Yilei Sun, and Brenda Goh in Shanghai; Editing by Stephen Coates and Mark Potter