Chinese electric car maker BYD says its first quarter profit jumped 632 per cent to US$111.4 million
- Shenzhen-based electric carmaker BYD reported first quarter profit of 749.73 million yuan (US$111.4 million), up from 102.4 million yuan a year earlier
Chinese electric vehicle maker BYD Co, backed by US investor Warren Buffett, reported on Sunday a 632 per cent 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 per cent.
Profit surged to 749.73 million yuan (US$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.
“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,” the company said in a stock exchange filing, 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 start-ups, as well as moves by Beijing to cut subsidies for the market to improve product quality and standards.
