BYD, the Chinese electric vehicle and battery maker backed by Warren Buffett, said first-quarter profit surged, buoyed by demand for battery-powered cars as it weathered supply chain kinks from the ongoing semiconductor chip shortage to more expensive raw materials.
Net income rose 241 percent to 808.4 million yuan (USD 123 million) in the three months ended March 31 from a year earlier, the Shenzhen-based company said in a statement. Sales increased 63 percent to 66.8 billion yuan.
“The sales volume of new energy vehicles of the Group also reached a record high, with market share continuing to increase, achieving rapid year-on-year growth, which led to a significant improvement in profitability and, to a certain extent, offset the profitability pressure brought by the rise in upstream raw material prices,” the company said.
BYD’s diverse range of businesses has allowed it to weather a series of obstacles, from the chip shortage that has plagued the global auto industry, to COVID-19 outbreaks that have locked down several Chinese cities, and surging commodity prices.
BYD also ranks as the fourth-biggest EV battery maker, predominately producing cells for its own cars, but increasingly looking outward to snatch share from market leader Contemporary Amperex Technology Co (CATL). It could also snag a higher share of China’s growing EV market as its rolls out a line of refreshed electric vehicles and plug-in hybrids equipped with its safer, cheaper blade batteries.
That breadth has helped BYD come through the supply-chain disruptions better than its peers, with monthly sales hitting new records.
Founded in 1995, BYD has grown into one of China’s largest EV and battery producers, making early bets on the demand for cleaner-energy vehicles stimulated by government plans to reduce carbon emissions. The company’s share of new-energy vehicle sales reached 17.1 percent in 2021 in China.
Last year, around 3 million new-energy vehicles, which includes plug-in hybrids, were sold in China and that’s expected to rise to 5.7 million units this year.
In the Philippines, the BYD brand will be relaunching with an entirely new line-up still under its current distributor, Solar Transport and Automotive Resources (STAR) Corporation.
Their new showroom is located at 1702 Dian Street corner Sen. Gil Puyat Avenue in Makati City. Interested parties may contact their hotline at +63 8533 8888 or +63 917 795 0168
Hope all EV vehicles in our country will become successful and a lot more affordable.
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