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BYD Q1 profit up 632%

Auto News - Published on Tue, 30 Apr 2019

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Economic Times reported that Chinese electric vehicle maker BYD Co Ltd , backed by US investor Warren Buffett, reported on Sunday a 632% jump in its first-quarter net profit, buoyed by strong demand for its new energy vehicles. The Shenzhen based car and battery maker, which has a joint venture with Daimler AG in China, said last month it expected first-quarter profit to rise by up to nearly 800%. Profit surged to 749.73 million yuan (USD 111.4 million), up from just 102.4 million yuan a year ago, when its earnings fell sharply due to cuts to subsidies for electric vehicles.

BYD said it expected half-year net profit to rise to 1.45 billion yuan to 1.65 billion yuan, versus 479.1 million yuan in the same period last year.

The company said in a stock exchange filing that "New energy vehicles are expected to continue to sell well in the second quarter, and new energy vehicle sales and revenues continue to maintain strong growth, adding that new passenger and commercial vehicle models will help boost revenue.”

China's market for electric cars is booming, but profits in the sector have been squeezed by fierce competition between established firms and rival startups, as well as moves by Beijing to cut subsidies for the market to improve product quality and standards.

The company sold 117,578 vehicles in the first three months this year, up 5.2 percent from a year earlier. BYD, whose popular models include its Tang-series electric cars, has said it aims to sell 650,000 vehicles in 2019.

Overall electric car sales in China jumped 61.7 percent in 2018 to 1.3 million vehicles, according to China's top car industry body China's Association of Automobile Manufacturers. It sees electric vehicle sales hitting 1.6 million this year.

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Posted By : Rabi Wangkhem on Tue, 30 Apr 2019
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