BYD plug-in car sales in China – August 2015
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.
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."