BYD doubles sales in May 2022
BYD sells the new model more than 22,000 times in a single day
BYD holds financial interests in several lithium producers
While BYD was ranked 13th in Chinese car sales last year, according to MarkLines, the electric car manufacturer has worked its way up to 2nd place in May 2022, behind Wuling. Earlier this year, FAW-Volkwagen topped the rankings ahead of BYD and Changan Automobile. On the world’s largest automobile market, overall declining sales figures (-11.8 percent) have recently been reported, but sales of electric cars rose by 91.4 percent in May at the same time.
A Chinese automaker in the fast lane
A few hours after the start of sales on May 20, 2022, BYD had already sold over 22,000 units of the new BYD Seal electric model. This corresponds to more than a third of the total annual production capacity. BYD now competes with US electric car maker Tesla in terms of popularity. BYD is also known for its support of Warren Buffett and Berkshire Hathaway.
BYD is not only one of the largest manufacturers of electric vehicles, but is also heavily involved in battery production. To this end, the company recently secured access to the raw material required for battery production and coveted in the industry with the help of investments in the lithium producers Shenzhen Chengxin Lithium and Shanshan Lithium Battery Material Technology. According to The Motley Fool, the group already had an 11.1 percent share of the entire EV battery market in the first quarter of 2022. Since May 2019, BYD’s battery business has been operating as FinDreams Battery, a subsidiary. According to media reports, BYD could even supply battery cells to Tesla in the future.
The sales figures of the Chinese carmaker are literally exploding this year, despite pandemic-related delivery bottlenecks and lockdowns: In May, BYD sold 113,768 electric cars, according to data from the Association of Chinese Carmakers, two of the BYD models were among the most popular in the industry, after the Wuling Hongguang MINIEV model of the Chinese industry leader. While the Tesla, NIO, and Xpeng models don’t make the rankings, according to CNBC.
“How big we can get depends on how much space the market gives us,” says Wang Chuanfu, BYD founder and president, according to an article in The Motley Fool on the rapid electrification of the auto sector. The electrification process is progressing much faster than expected. In the competition on the electric car market, the company that has the edge in terms of resources, supply chains and production advantages wins.
National and international competition
According to MarkLines, the German-Chinese joint venture FAW-Volkswagen, which sells Audi and VW models in China, continues to dominate the overall Chinese automobile market with 150,009 cars sold (combustion engine and electric cars). But BYD can also be found in this overall ranking with its electric vehicles and hybrid models, directly behind it in second place.
However, FAW-Volkswagen sales fell 10.60 percent year-on-year, while BYD sales rose 159 percent compared to the same month last year, when the automaker was ranked 13th. In EV sales, BYD ranked first, ahead of General Motors’ joint venture with Wuling Motors and state-owned SAIC Motor.
Tesla is no longer on the list for May, but in February 2022 the Model Y was still the number one most popular model in MarkLines’ ranking with 32,403 units sold. In the USA, too, the American electric car manufacturer did not make it onto the podium of the top three places in terms of sales on the passenger car market. According to Sino Auto Insights data, Toyota ranks ahead of Ford and General Motors (Chevrolet).
According to CarNewsChina, BYD with a market capitalization of USD 127.23 billion has overtaken Volkswagen (USD 116.86 billion) as the third most valuable car brand in the world, trailing Tesla with USD 740.58 billion and Toyota with a market capitalization from $227.52.
Editorial office finanzen.net
Leverage must be between 2 and 20
No data
More news about Berkshire Hathaway Inc. B
Image sources: Philip Lange / Shutterstock.com