BYD expects 96% plunge in first-quarter profits
BYD Co. says first-quarter profits may decline up to 96 percent from a year earlier to 5 million yuan ($806,452) due to falling vehicle sales.
Inland China used to be the home turf and a stronghold for domestic Chinese automakers that produce inexpensive vehicles. But with global brands making inroads with low-priced models, domestic automakers have been losing market share since last summer.
BYD admits in its 2013 annual report that its sales have been hurt. "It is expected that the sales of traditional automobiles [i.e. gasoline-powered vehicles] will decrease in the first quarter of 2014," the company said in the report.
BYD also makes electric vehicles and plug-in hybrids, which are now in stronger demand now that Shanghai and Beijing have liberalized subsidies for these vehicles.
But the company cautioned that rising sales of its EVs and plug-in hybrids won't offset weak sales of gasoline-powered vehicles.
Last year, BYD's vehicle sales rose 14 percent to 470,000 gasoline vehicles, according to its annual report. BYD did not forecast sales for 2014.
The company also makes mobile phone components, rechargeable batteries for electronic devices and solar panels. Last year, BYD's profits totaled 553 million yuan, nearly six times greater than in 2012.
BYD, headquartered in the south China city of Shenzhen, is partly owned by U.S. billionaire Warren Buffett. Its stock is listed in Hong Kong and Shanghai.
BYD admits in its 2013 annual report that its sales have been hurt. "It is expected that the sales of traditional automobiles [i.e. gasoline-powered vehicles] will decrease in the first quarter of 2014," the company said in the report.
BYD also makes electric vehicles and plug-in hybrids, which are now in stronger demand now that Shanghai and Beijing have liberalized subsidies for these vehicles.
But the company cautioned that rising sales of its EVs and plug-in hybrids won't offset weak sales of gasoline-powered vehicles.
Last year, BYD's vehicle sales rose 14 percent to 470,000 gasoline vehicles, according to its annual report. BYD did not forecast sales for 2014.
The company also makes mobile phone components, rechargeable batteries for electronic devices and solar panels. Last year, BYD's profits totaled 553 million yuan, nearly six times greater than in 2012.
BYD, headquartered in the south China city of Shenzhen, is partly owned by U.S. billionaire Warren Buffett. Its stock is listed in Hong Kong and Shanghai.
