BYD aims to sell 700,000 units in 2010

China's BYD Company, a battery and vehicle maker backed by billionaire Warren Buffett, aims to boost its vehicle sales to eight to nine million units by 2025, a senior executive said yesterday.

BYD, which began as a maker of rechargeable batteries in Shenzhen in 1995, has expanded into mobile phones and automobiles with an aspiration to be a leading producer of environmentally friendly electric vehicles. The company, which is about 10 per cent owned by Buffett's Berkshire Hathaway, sold 170,000 vehicles in 2008 and aims to sell 400,000 units this year and 700,000 in 2010, according to Henry Li, General Manager of BYD Auto's export arm.

"We aim to become one of the biggest automakers in the world by 2025," said Li.

The company, which on Sunday announced it was buying a bus maker in Hunan, would double its vehicle production capacity every year for the next few years, he added. "Exports will account for a minimal portion [of sales] of several thousand to 10,000 units this year. This is because of the financial crisis overseas; we are focused on domestic growth," he said.

Li said the company aims to export half of its vehicle production by 2025.

Analysts believe BYD could reach its 2010 target if demand for small cars remains strong in China's third and fourth-tier cities.

"On exports, it may not sell as many plug-in electric cars as it hope in mature markets, but potential remains huge in emerging markets in Southeast Asia, Africa and South America," said Chen Qiaoning, an analyst at ABM Teda Fund Management.

BYD shares rose nine per cent yesterday before ending up 6.8 per cent in a broader Hong Kong market up 1.4 per cent. Viewing Buffett's investment as a stamp of approval, investors have driven up the stock price by 300 per cent in 2009.

 

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.