Warren Buffett-backed BYD outperforms rivals in China’s electric car industry

Warren Buffet BYD
Warren Buffet BYD

BYD Company Limited (OTCMKTS: BYDDF), the Chinese manufacturer backed by Warren Buffett, disclosed that it is outperforming its competitors in the luxury electric car industry in China.

In a recent announcement, BYD said it sold 130,970 units of battery-powered electric vehicles in 2020, down by 11% from its total sales of 147,185 units in 2019.

Its overall sales including new energy vehicles, passenger vehicles, plug-in hybrid vehicles, commercial vehicles (bus, others), and oil-fueled vehicles (sedan, SUV, and MPV) declined 7.6% to 426,972 units last year from 461,399 units in 2019.

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However, BYD saw an improvement in sales of its battery-powered electric vehicles (19,482 units) and plug-in hybrid electric vehicles (8,112 units) in December. Its combined sales were $27, 594 units, a 150% year-to-year growth.

Furthermore, the Buffett-backed Chinese company owes its success to its  flagship “Han” luxury electric sedan. Since its launching in July, BYD sold more than 10,000 Han units in November, according to CNBC based on the company’s investor call transcript obtained through the Wind Information database.

BYD’s Han luxury electric sedan’s sales performance

BYD disclosed in September that it delivered 4,000 units of its luxury electric sedan  and 40,000 in sales were made at that time in China.

The Chinese company’s Han electric car comes in two versions, a pure electric and plug-in hybrid. Han is selling better than all other start-up competitors like Li Auto and Xpeng. Its sales performance is the same as NIO, another Chinese electric car maker, which is planning to launch its first sedan on Saturday.

According to CNBC, NIO doubled its sales and delivered more than 43,729 units. Its sales increased over 1,400$ in 12 months. However, the company couldn’t outperform BYD which is currently leading the Chinese electric car manufacturing in the country.

Meanwhile, Xpeng disclosed on Monday that its 2020 deliveries increased by 112% YoY to 27,014 units. The company’s best month was December when it delivered 5,700 units making a 326% on a Year to Year basis. On the other hand, Li Auto delivered 6,106 units in December and its total deliveries were 30,000 units since its launching in December 2019.

The growing interest from investors in electric vehicles highly contributed to the successful launch of many electric car manufactures in both China and  the United States. The interest doesn’t seem to be plummeting anytime soon.

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