BYD sales fall in January

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From Reuters:

Chinese carmaker BYD Co Ltd , backed by U.S. billionaire Warren Buffett, reported a 15 percent drop in January auto sales, partly due to production constraints, which could put further pressure on its stock.

The battery and carmaker sold 52,054 vehicles in January at the wholesale level, down from 61,215 units in the same month last year, the company said in an email to Reuters.

“The number certainly was unsatisfactory and continued to underperform its competitors,” said Galant Ng, an analyst at Haitong International Research.

Ng said he would review and possibly cut his sales forecast of 700,000 units for the company this year after the January sales figure confirmed the weak sales trend had extended from the second half of 2010.

BYD missed its revised sales target of 600,000 units and sold 519,805 vehicle in 2010 as its parts production and dealer network development could not match with the company’s fast expansion last year.

The weak sales may put pressure on the company’s stock which ended down 3.8 percent on Tuesday at HK$34.25, the lowest in 19 months.