AutoBeta(AutoBeta.net)01/08 Report--

According to sales figures released by BYD on January 7, BYD sold 43179 vehicles in December, down 37.99 per cent from a year earlier. Among them, sales of new energy vehicles were 13099, down 71.92% from the same period last year, while sales of fuel vehicles were 30080, up 30.85% from the same period last year. Total BYD car sales in 2019 were 461399, down 11.39 per cent from a year earlier. Among them, the total sales of new energy vehicles was 229506, down 7.39% from the same period last year, while the total sales of fuel vehicles was 231893, down 15.02% from the same period last year.

In the first half of 2019, BYD's new energy vehicle sales topped the list with 143000 vehicles. Wang Chuanfu, chairman of BYD, said at the 2019 World New Energy vehicle Congress that BYD's new energy vehicle sales will increase by 70% and 80% in 2019. However, since the decline of subsidies for new energy vehicles in June last year, sales of new energy vehicles began to decline. According to the China Automobile Association, sales of new energy vehicles have declined for five consecutive months, falling 4.3%, 15.8%, 34.2%, 45.6% and 43.7% from July to November 2019, respectively.

BYD, as the leading company of new energy vehicles, is not immune from it. Since July last year, sales of new energy vehicles have continued to decline by 11.84%, 23.4%, 50.96%, 54.57%, 62.69% and 71.92%, respectively.

In addition, BYD has received a lot of subsidies. According to the document on the examination and approval of the advance allocation of subsidy funds for the promotion and application of new energy vehicles issued by the Ministry of Industry and Information Technology on December 10, 2019, BYD received a total of 3.63 billion yuan in new energy subsidy funds. is the car company that receives the most subsidy funds for new energy vehicles.

Even with a lot of subsidies, BYD's future is hardly optimistic. According to the financial report, BYD realized operating income of 93.822 billion yuan in the first three quarters of 2019, an increase of 5.44% over the same period last year, and net profit of 1.574 billion yuan, up 3.09% from the same period last year. BYD expects its full-year net profit in 2019 to be 1.584 billion yuan to 1.774 billion yuan, a decline of 36.19% to 43.03%.

BYD said in its third-quarter results that due to the impact of the macroeconomic situation, the overall market demand of the automobile industry is expected to remain weak in the fourth quarter, superimposed by the impact of changes in the fuel vehicle price system and the impact of a sharp decline in subsidies for new energy vehicles, the sales volume of the new energy vehicle industry is lower than expected, and the profit of the group's new energy vehicle business is also expected to decline to a certain extent compared with the same period last year.

BYD originally started with batteries, after 2009 began to layout the development of new energy vehicles, new energy vehicles gradually replace batteries to become the most important source of income for BYD. However, with the decline of subsidies for new energy vehicles, BYD has reversed on new energy vehicles. Once the subsidies are lost, the demand for new energy vehicles will be further reduced. For BYD, it still needs to constantly improve the tone of its brand.

Previously, Wang Chuanfu said that BYD aims to sell 650000 vehicles in 2019, of which 350000 are new energy vehicles. As of December 2019, BYD's overall sales target rate was 70.98%, and the target sales rate of new energy vehicles was 65.57%.

Entering 2020, the cold winter breath of the auto market will continue, and at present, BYD's next road is not very easy.

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