BYD's net profit increased sixfold in the first quarter, standing on the new energy and SUV outlets

Standing on the vents of the two major hotspots of new energy vehicles and SUVs, BYD earned a lot of money in the first quarter of 2016. After the net profit growth of more than five times last year, it continued to grow strongly from January to March this year. BYD announced on the 28th that the company achieved revenue of 20.285 billion yuan during the reporting period, a year-on-year increase of 32.74%; net profit of 851 million yuan, an increase of 603.38%.

BYD forecasts that the profit for the first half of 2016 will be 2.25 billion yuan to 2.45 billion yuan, up 382.15% to 425.01% year-on-year. It is mainly benefited from the wide recognition of consumers and the strong support of the country. The new energy vehicle market has entered a period of rapid growth. In the second quarter, the company's new energy vehicle sales continued to grow, and the sales scale continued to expand, driving the revenue and profitability of new energy vehicles to continue to increase.

BYD insiders said in an interview with the First Financial News on the 29th that the reason why BYD's performance has maintained good growth is mainly related to BYD's product layout, which has just stepped on the two hot spots of new energy vehicles and SUVs. Tang and Song, new models of plug-in hybrid SUVs launched last year, are currently performing well in the market. Together with BYD’s first small and medium-sized SUVs listed this month, these three new energy SUVs compete in intermediate, compact and medium-sized The small SUV market will further boost the growth of BYD's new energy vehicles.

According to the statistics of China Association of Automobile Manufacturers, from January to March 2016, the production and sales of new energy vehicles in China were 62,700 units and 58,100 units, an increase of 1.1 times and 1 time year-on-year. Among them, pure electric vehicles produced and sold 46,300 units and 42,100 units, up 1.4 times year-on-year; plug-in hybrid vehicles produced and sold 16,300 units and 16,000 units, up 46% and 43% year-on-year. As the industry leader, BYD sold 16800 units in the first quarter, accounting for 28.9% of the total market sales, once again leading the industry. Among them, the company's plug-in hybrid car and pure electric vehicle sales reached 11,900 and 4,839 respectively, ranking first and second in the market segment.

According to the report of Zhongtai Securities, with the conclusion of the “cheat” and the national subsidy policy, and the local subsidies, the local government will gradually introduce subsidies and other policies. The new energy auto industry will continue to blow well, and it is conservatively expected that China’s new energy this year. The production and sales of automobiles exceeds 620,000. And optimistic about BYD's leading position in the industry, sales will exceed expectations.

Judging from the current 2016 Beijing Auto Show, the new energy vehicles are showing a trend of continuous warming, showing a total of 147 new energy new vehicles. In the new energy auto exhibition area, car companies have launched their own new energy car products, which are more abundant in quantity and type.

Among them, after BYD introduced the Song plug-in hybrid SUV to the market last year, it also exhibited the Song Chun electric version at the Beijing Auto Show. The car will be launched in the second half of this year.

BAIC Group displayed a full range of new energy vehicle products at the Beijing Auto Show, including the first pure electric SUV. Li Feng, president of Beijing Automotive Co., Ltd. believes that with the acceleration of market competition, continuous integration and innovation in these fields will eventually bring more choices to consumers.

During the auto show, GAC Group released the news of the establishment of the new energy branch and exhibited three new energy vehicles that have not yet been listed. Wu Song, general manager of Guangzhou Automobile Group Passenger Vehicle Co., Ltd. said that after the launch of these three vehicles this year, the target is 5,000 vehicles and 8,000 vehicles will be challenged.

Mercedes-Benz, BMW, Tesla, Porsche, etc. also appeared in the new energy auto show. In addition, Toyota and Honda both released information at the auto show that they will introduce plug-in hybrid power new energy vehicles in China in 2018 and 2020 respectively.

Cui Dongshu, secretary-general of the National Passenger Car Market Information Association, said recently that this year is a crucial year for the development of new energy auto companies, as sales of new energy vehicles will begin to shrink from next year. Beijing, where the Beijing Auto Show is located, will become the main battlefield for new energy vehicles.