BYD Notches Record Quarterly Profit
Daimler partner rides a huge wave of overall Chinese auto sales to break sales record
By Brendan Moore
If you’re Chinese auto and battery maker BYD Co. and you have already signed a partnership deal with Daimler, an MOU (memorandum of understanding) with Volkswagen AG, garnered superstar investor Warren Buffet as a major financial backer, and positioned yourself in the world’s hottest car market as a major player, what do you do to further impress?
You crush your Q4 profit forecast numbers, that’s what.
That is what BYD has done, earning 1.46 billion yuan ($214 million USD) instead of the 891 million yuan previously forecasted and compared with the 243 million yuan made in the same quarter last year.
There is more good news as BYD says it will almost double its unit sales from 2009. It plans to go from 440,000 sales in 2009 to 800,000 sales in 2010.
BYD, which is the acronym for “Build Your Dreams” stated to the Hong Kong Stock Exchange that strong demand and low penetration of vehicle ownership in China would provide considerable growth for the automaker for the foreseeable future.
Indeed. Sales in China, now the world’s largest vehicle market, spiked a staggering 46% in 2009, for total sales of 13.6 million vehicles. Most analysts expect an increase of another 12% this year.
Henry Li, BYD’s export manager, said earlier this month that the company would debut its F3DM hybrid car and E6 EV in Europe in 2011.
Full-year net profit for the company was 3.79 billion, a dramatic increase from 1.02 billion yuan a year earlier.