China's BYD posts better electric car sales in first half of year
BYD, China leading producer of electric cars, said its sales of the cutting edge vehicles rose sixfold during the first half of the year, following moves by Beijing to encourage green cars to tackle pollution.
Still, the jump which brought BYD sales of full electric and plug in hybrid cars to roughly 7,600 in the six months ended June 30 wasn big enough to signal there will be serious mass market demand for the pricey cars, analysts said. And the increased sales of electric cars couldn offset a 27 per cent decline in sales of traditional gasoline powered cars, which still account for nearly half of BYD total revenue.
Poor sales of gasoline powered cars and continued losses Masterton Rentals from a division that makes solar panels pushed BYD first half net profit down more than 15 per cent to CNY361 million versus the previous year, the company said Sunday.
BYD weak results underscore the challenges China carmakers face in their home market. The company, which is 9.1 "Anaboliset Aineet" per cent owned by MidAmerican Energy Holdings Co., a unit of Warren Buffett Berkshire Hathaway Inc., is the biggest seller of electric cars in China, with a 37 per cent Gensci Jintropin share of the market during the first half of the year, according to BYD. Without subsidies, BYD flagship e6 electric car sells for around 380,000 yuan ($60,800) a prohibitive price for most buyers.
This year for the first time, big cities such as Beijing and Shanghai are relaxing subsidy rules that effectively prevented sales of electric and hybrid cars by local manufacturers that weren based in their jurisdictions. The looser regulations helped sales of green cars to hit nearly 20,500 in the first half of the year, versus around 17,600 for all of 2013, according to the China Association of Automobile Manufacturers.
The changed rules also allowed BYD to sell its electric vehicles in major Chinese cities outside its home province of Guangdong; revenue from electric cars hit CNY2.7 billion, accounting for roughly 10 per cent of total revenue. BYD reiterated its full year sales target of 20,000 "Anabolika Definition" green Injectable Steroids For Bodybuilding In India vehicles, a sharp increase from about 2,000 sold during all of last year.
Yet green cars remain a niche market, and in the mass market for gas powered cars, most Chinese consumers prefer foreign brands. BYD said it sold 180,000 traditional cars, down 27 per cent from a year earlier.
BYD Chairman Wang Chuanfu told a news conference on Monday that the outlook for the traditional car industry remains uncertain for the rest of the year, without giving a full year sales target.
"Given the challenging environment for traditional car sales, we would put more emphasis on our push to boost electric car sales by introducing more new models in the second half," he said, noting that BYD plans to 4-chlorodehydromethyltestosterone launch a new plug in hybrid sport utility model called Tang and a pure electric car named Denza that is manufactured by a joint venture of BYD and Germany Daimler AG.
Some analysts remain skeptical about BYD plan to ramp up electric car sales, citing the lack of charging infrastructure and local protectionism in some Chinese cities as hurdles. Barclays said BYD results are "unimpressive," while JL Warren Is Nandrolone A Steroid Capital said it doesn expect the company electric cars to sell beyond Shanghai, Shenzhen, and Guangzhou due to local protectionism. "Without local government support in the form of subsidies, the demand simply isn there for electric vehicles. That is true for Buy Viagra Berlin all EV makers selling in China, including Tesla, Kandi, and BYD," it said.
BYD expects net profit for the January September period to range from 360.7 million yuan to 410.7 million yuan, implying a weak third quarter performance as softening demand continues in the traditional weak season.
Shares of BYD Co. fell as much as 8.7 per cent to 44.90 Hong Kong dollars (US$5.77) on Monday after the results. The stock recovered on anticipation of higher electric car sales in the second half, closing 2.2 per cent higher at HK$50.30.