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Chinese electric vehicle manufacturer BYD Co Ltd, backed by US investor Warren Buffett, announced Sunday a 632 percent rise in net profit in the first quarter, fueled by strong demand for its new energy vehicles.
The Shenzhen-based battery and auto maker, which has a joint venture with Daimler AG in China, announced last month that it expects earnings growth of nearly 800 percent in the first quarter.
Earnings climbed to 749.73 million yuan (111.4 million US dollars) from 102.4 million yuan a year earlier, as profits fell sharply due to lower subsidies for electric vehicles .
According to BYD, the half-year net profit is expected to reach 1.65 billion yuan, compared to 1.45 billion yuan, compared with 479.1 million yuan in the same period last year.
"The new energy vehicles are expected to continue to sell well in the second quarter, and sales and revenues from new energy vehicles will continue to maintain strong growth," the company said in a stock market listing, adding that the new models Commercial and commercial vehicles would contribute to income.
China's electric car market is booming, but profits in the sector have been negated by fierce competition between established companies and rival startups, as well as Beijing's efforts to reduce market subsidies. to improve the quality and standards of products.
The company sold 117,578 vehicles in the first three months of the year, up 5.2% from a year earlier. BYD, whose popular models include its Tang series electric cars, has announced plans to sell 650,000 vehicles in 2019.
Global sales of electric cars in China jumped 61.7% in 2018, reaching 1.3 million vehicles, according to the Association of Automobile Manufacturers (CAAM), the main body of the Chinese auto sector. Electric vehicle sales reached 1.6 million this year.
Last month, China raised its standards for electric cars receiving subsidies and reduced the amount it is willing to provide to the companies concerned.
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