BYD predicts fivefold jump in first-half profit as EV sales rise
BYD Co. is projecting a fivefold increase in first-half net profits, citing strong demand for its electric and plug-in hybrid vehicles.
The Shenzhen-based company said it expects its net income growth would range from 382 to 425 percent, according to stock exchange filings on Thursday.
If so, the automaker's net profit would be at least 2.25 billion yuan, ranging up to 2.45 billion yuan ($347 million to $378 million).
For the first quarter, BYD reported profits of 851 million yuan, a sevenfold increase year on year.
The automaker reported a similar gain in net profits for 2015 as sales of EVs and plug-in hybrids quadrupled, thanks to aggressive government subsidies and tax incentives.
That surge continued in the first quarter of 2016, as sales of EVs and plug-in hybrids doubled.
The government sees such vehicles as Chinese automakers' best shot at closing a competitive gap with more experienced global rivals.
Warren Buffett's Berkshire Hathaway Inc. owns 9.1 percent of BYD.
If so, the automaker's net profit would be at least 2.25 billion yuan, ranging up to 2.45 billion yuan ($347 million to $378 million).
For the first quarter, BYD reported profits of 851 million yuan, a sevenfold increase year on year.
The automaker reported a similar gain in net profits for 2015 as sales of EVs and plug-in hybrids quadrupled, thanks to aggressive government subsidies and tax incentives.
That surge continued in the first quarter of 2016, as sales of EVs and plug-in hybrids doubled.
The government sees such vehicles as Chinese automakers' best shot at closing a competitive gap with more experienced global rivals.
Warren Buffett's Berkshire Hathaway Inc. owns 9.1 percent of BYD.
