BYD's first electric bus K9 at its factory in Lancaster, California. (Photo/Xinhua)
Boosted by a series of stimulus policies, BYD Company Limited's sales of new energy cars jumped tenfold between January and April compared with the same period a year earlier, reports the Shanghai-based China Business News.
If it were not restricted by insufficient production of batteries, the sales growth of BYD's new energy cars would be even faster, said one unnamed BYD spokesman. The company raised HK$4.2 billion (US$541 million) by issuing H-shares, chiefly aiming to upgrade the production capacity of new energy vehicles.
BYD recently projected its first-half net profit at between 350 million yuan and 490 million yuan (US$56 million-$79 million). Chairman Wang Chuanfu said on June 25 that his company will see a turning point in sales in the second half, expecting acceleration in the fields of forklifts, logistics trucks, agricultural vehicles, and sanitation trucks in addition to new energy passenger cars and buses.
After long-term efforts, the company finally made an bold move in Beijing and Shanghai for its new energy vehicles, with especially its BYD Qin, a plug-in hybrid compact sedan introduced last December. The model has sold nearly 4,500 vehicles and not-yet-delivered orders of more than 8,000. Projections put sales of the Qing at 20,000 this year, more than the nation's total new energy cars sold last year.
The whole industry is riding the new surge of interest in new energy cars. In the first four months of this year, the nation sold 10,501 new energy vehicles, up 154% from the same period a year earlier. In April alone, figures jumped 251% from a year ago, according to statistics from the China Association of Automobile Manufacturers (CAAM).
Separately, the Ministry of Industry and Information Technology (MIIT) recently announced that the nation produced 3,770 new energy cars in May, up 98.32% from a year earlier.
Behind the surging sales is a central and local government policy push with subsidies. Quite a few local governments have been injecting subsidies into new energy cars since June. The government is also accelerating the construction of infrastructure projects related to new energy cars.
State Grid Corporation of China spokesman Wang Yanfang recently said in a briefing that by 2020, the nation will invest nearly 200 billion yuan (US$32 billion) in building electric vehicle charging facilities — all bullish factors for the new energy car industry.
Wang Chuanfu said a series of new policies are expected to take effect in the coming months that will benefit BYD, including reportedly removing the vehicle purchasing tax (which stands at 10% currently), and a reform on electricity prices.