An interesting article on BYD’s economical situation come to us from South China Morning Post.
In recent years, BYD (and Geely) lost the most share in the Chinese automotive market among manufacturers, as their conventional car sales decreased, and the small New Energy Vehicles (all-electric and plug-in hybrids) sector in which BYD bet big didn’t compensated from this drop. At least not yet.
Perspectives are moderate because car sales in China decelerated to some 7% from previous double-digit growth numbers, so competition is even more fierce now.
BYD seems to need cash and finally, after a year of waiting, got permission to set up a finance joint venture to leverage car sales.
At the same time, BYD is selling its profitable electronics division – BYD Electronic Components (for up to $370 million)