finance
BYD Reports Profit Drop Over 50% in China as Global EV Sales Grow Modestly
Stella Li told an industry summit that crude oil topping $100 a barrel after the U.S. and Israeli strikes on Iran has prompted drivers to consider electric and hybrid vehicles. BYD is accelerating European factory and product plans even as its first-quarter profits fell more than 50 percent amid Chinese competition.
May 13, 7:50 AM·2m read1 source
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Stella Li, executive vice-president of BYD and second-in-command to CEO Wang Chuanfu, said the rapid rise in global oil prices following the war in the Middle East served as a "wake-up call" for car buyers. Crude oil prices soared above the $100 a barrel mark after the US and Israel attacked Iran in March and have remained volatile since then. 22 per gallon in recent weeks.
"People suddenly realize that electric and hybrid cars are saving them money. With the oil price increasing, it's hurting their daily life," Li told the Financial Times' Future of the Car Summit on Wednesday. "This helps us, also.
It's making a lot of people who never wanted to try out an electric car start to come to our shops," she added. The comments come as BYD faces pressure in its home market. The automaker announced that first-quarter profits had fallen by more than 50 percent amid fierce competition from rival EV makers in China.
Li said on Wednesday that BYD's ambition was to become a "global manufacturer" this year. The company is looking to build an additional two factories in Europe, in addition to its plant in Hungary. BYD is planning to roll out its first EV designed exclusively for the European market in the coming months, a hybrid hatchback called the Dolphin G.
It is also set to roll out its five-minute EV charging stations across Europe. BYD is unlikely to bring its low-cost electric vehicles to the US anytime soon due to high tariffs on Chinese EVs. Business Insider reported that the Chinese EV giant is betting on overseas sales to offset domestic challenges.
Global sales of electric vehicles grew 6 percent year over year in April, according to data from Benchmark Mineral Intelligence. Surging EV sales in Europe were offset by falling demand in North America and China in April.
