BYD Hopes To Raise $2.4 Billion To Finance Expanded Production Of Batteries, New Energy Vehicles

OCT 12 2015 BY MARK KANE 26

BYD plug-in car sales in China – August 2015

BYD plug-in car sales in China – August 2015

All 8 Of BYD's 8 Vehicles On Display At Shanghai Auto Show Are Plug-In Electric Cars

All 8 Of BYD’s 8 Vehicles On Display At Shanghai Auto Show Are Plug-In Electric Cars

BYD announced its intention to raise 15 billion yuan (US$2.4 billion) in equity placements.

The main purpose for the funding is to finance expansion of the company’s lithium-ion battery production and development of new New Energy Vehicles (that’s all-electric and plug-in hybrids for those outside China). Cash will be needed also to replenish working capital and pay loans.

BYD bets heavily on NEVs, and this part of its business really is growing strong with a large wave of Chinese NEVs on the market today.

This year, BYD hopes to sell 60,000 NEVs. Sales of cars, without trucks and buses, amounted to 30,000 in the first eight months of 2015.

BYD Tang

BYD Tang

According to WantChinaTimes.com, revenues from NEVs stand at nearly 19% of total BYD revenues in the first half of 2015 (up 120% year-over-year) at 5.976 billion yuan (US$940 million).

“BYD boasts some major advantages in the development of new energy vehicles. First, its product line in this sector covers pure electric vehicles and hybrid EVs, with the latter more suitable for the private car market. Second, the company owns more mature technology and has accumulated comprehensive marketing experience. Third, the firm has flexible product lines, with its products also including electric lift trucks and electric road sweepers, in addition to general EVs, HEVs and PHEVs.

New energy vehicles already launched or to be launched by BYD will enable the firm to secure viable operations in the new niche market. After launching the Qin hybrid SUV and the Tang hybrid SUV, the company will soon debut the Song plug-in hybrid SUV and Yuan compact plug-in hybrid SUV. Market analysts said that such a fast pace in offering a variety of models in this regard has shocked BYD’s competitors.”

Source: WantChinaTimes.com

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26 Comments on "BYD Hopes To Raise $2.4 Billion To Finance Expanded Production Of Batteries, New Energy Vehicles"

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With Buffet Involved .., I have No doubt that the will succeed……..

The Chinese government wants evs to be a success, therefore Chinese made evs have a chance, even if they are an inferior product.
Better a so-so ev than anything using petrol.

Why do you ASSume they are inferior? And inferior to who? Not every EV maker so sells EV’s in the US have perfectly stellar reliability history either.

Have you actually seen some of the stats on some of their products (especially their PHEV’s?) They actually have some compelling vehicles.

+1 why assume they are inferior? What is inferior anyway? If they look, drive and are reasonable cars as long as they are mass produced I don’t have an issue.

That was a statement of fact, not an assumption. Or more accurately my opinion based on my belief that it is an inferior product.

They sell busses and cars in Cuba for many years, remove the logo and you won’t see any difference with other brands.

That is a true statement, but not applicable to BYD.

This article – like so many – shifts the focus away from pure EV’s ie. the e6 – and focuses almost entirely on hybrids.
No mention of course of the superb Daimler-BYD DENZA all-electric EV.
As for Warren Buffett – he’s failed miserably to get the e6 exported and sold around the globe.
Paul G Editor EVUK Electric Vehicles UK
http://www.EVUK.co.uk

But he certainly knows how to fuel investor interest by making sure we read about them all the time 🙂

the e6 is crap therefore is was not sold globally.

Oil and oil car lobbies are powerful here on self protectionism.

I would appreciate a lot that Inside EVs take care to separate EVs from Hybrids on the charts.

All of them are EVs so it’s hard to separate them more based on that wish.

You could ask for a separation of BEVs and PHEVs though.

Of course.

Also today Wall Street Journal reports Ford will introduce C-Max Energi PHEV in China in 2016 (and ensure overall continued market access with $1.8 Billion in research)

http://www.wsj.com/articles/ford-to-focus-1-8-billion-on-china-smart-cars-1444642178

I like the New Energy thing. Some folks say that it would be confusing with Neighborhood Electric Vehicle, but most Americans don’t even know what those are anyways. And their sales aren’t exactly huge.

If “NEV” is the problem, just call them New Energy Automobiles (NEA).

Or New Energy Transportation (NET’s)

Or New Energy Machines (NEM)

How about vehicles with a New Energy Drive (NED)?

There is no problem. NEV = New Energy Vehicle.

And for the rare occasions when someone wants to talk about those slow golfcart EVs then they can call them golfcarts or maybe LSEVs (low-speed electric vehicle).

@ Mark Kane:

in the legend of the graph you can see “last years sales”. However you can not see the curve in the plot. Probably is behind the other lines, because BYD only rose 😉

We will fix this for September report 😉

EVs representing ~20% of sales is very impressive; note that BYD also sells phone handsets, electronic components and assembly services, so the % of their vehicle sales is higher.

“BYD announced its intention to raise US$2.4 billion. The main purpose for the funding is to finance expansion of the company’s lithium-ion battery production”.

Presumably this investment will support increases in both car & bus production.
But to get an idea of the capacity increase, how many Tang battery packs could BYD manufacture annually with $2.4bn investment?

Anyone know if BYD is interested in fast-tracking the new alumina-titania nanoshell technology? It may add to costs, but it looks as though it’s mass production ready and can put BYD’s battery density straight into the Tesla Model S density zone, after accounting for the costs and weight of Tesla’s active cooling.

It’s great to see that BYD is succeeding in pulling itself above the morass of all the tiny, short-lived regional auto makers in China. And yes, BYD has also succeeded in selling EV buses worldwide.

But its attempt to market the e6 in first-world countries failed. BYD is going to have to up its game if it wants to play in the highly competitive first-world new car market, whether it’s selling BEVs, PHEVs, or gasmobiles.

It’s not China-bashing to note that on average, Chinese manufacturers tend to produce inferior products/parts, and have entrenched problems with quality control and even outright counterfeit goods in the supply chain. That’s why, for example, Apple assembles its products in China, but the parts are made elsewhere.

Again, that’s not China-bashing, it’s just the reality. Here’s hoping that BYD can buck the trend.

lol.

It’s only China-bashing if it’s false; which it is. China does have problems with its low-end of production but at the same time, if people do care, they can produce high quality goods comparable with the rest of the world.

That Apple only assembles the iPhone in China is false; if you look at the chipmaking and electronics industry, it is relatively capital intensive and high value so much of what goes into the iphone has no advantage when produced out of China. On the other hand, Huizhou-based Desay is one of iPhone’s battery suppliers, and I would not be surprised if a ton of other subcomponents were also not China-made due to price.

A little off-topic but Shenzhen just announced, that it will replace *ALL* its buses with battery electric ones within three years.

This is huge.

http://szdaily.sznews.com/html/2015-10/14/content_3357473.htm

Interesting link; it might actually be closely related to the BYD investment:

“Mayor Xu Qin made the remarks while accompanying a number of Shenzhen-based companies including BYD”.

“BYD chairman Wang Chuanfu said 3,600 e-buses made by the company will be ready to hit the road in Shenzhen by the end of the year”.