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BYD Expects a Profit Fall of 98%, Compared to 2011

Chinese automaker BYD has announced that it expects a drop in profits of 98%, when compared to the numbers they recorded in 2011, when their net profit was 1.38-million Yuan. This year they expect a far lower figure, somewhere between 27.7-million and 110-million Yuan - a huge difference, caused mainly by the slowing of the Chinese economy.
BYD 1 photo
The company, part-owned by Warren Buffet’s Berkshire Hathaway investment fund reported a 94% drop in Q3 profits, and expects the fall to worsen by the years’ end. Aside from the less-than-booming Chinese economy, another reason for the dramatic drop is the aging range of models that BYD is offering, which have now been surpassed by both Chinese and especially foreign cars which are arriving in their millions in China.

An official BYD statement said: “Sales in the Chinese car industry started to slow this year as the economy’s growth prospects dimmed, and the company faced a lot of competitive pressure in the market. Global demand for solar energy was also weak, leading to a big fall in our sales.”

 
 
 
 
 

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