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BYD Profit Growth Could Slow to 77% This Year
BYD Co., whose net profit multiplied more than fivefold in 2015, says its earnings this year will climb a mere 77%-84% as the growth rate for China’s electric and hybrid car market eases.
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BYD Co., whose net profit multiplied more than fivefold in 2015, says its earnings this year will climb a mere 77%-84% as the growth rate for China’s electric and hybrid car market eases.
BYD’s net profit in 2015 skyrocketed 551% to 2.8 billion yuan. Revenue surged 40% to 78 billion yuan, as income from “green” vehicles nearly tripled to 19 billion yuan. The revenue surge was driven primarily by the government’s quadrupled subsidies for EV and plug-in hybrid production.
But Beijing’s support has eased this year amid evidence that several carmakers were cheating the program by reporting sales of cars they hadn’t built. As a result, BYD’s net profit through the first nine months of this year rose 87% to 3.7 billion yuan ($541 million), in line with an earlier forecast.
Reuters cites trade association data showing that China’s demand for EVs and plug-in hybrids totaled about 289,000 units through the first nine months of 2016. The government’s goal is to sell 700,000 such vehicles this year.
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