BYD boss expects substantial profits from new energy vehicle business in three years

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BYD’s chairman Wang Chuanfu looked glad at the company’s A-share launching ceremony on June 30^th when the big screen showed that BYD opened at 22 yuan per share, up 22.22% from the IPO price. An insider said frankly that Wang Chuanfu was upset before the ceremony as they found previously that the stock was not as popular as previously imagined.

Wang Chuanfu accepted an interview after the ceremony. He said that the limited funds raised from the IPO will be invested in the new energy vehicle business, mainly in the battery sector.

He also explained why the company’s net profits for the first quarter fell 84% from a year earlier. According to Wang Chuanfu, the company’s performance in the first quarter was actually better than the fourth quarter of last year, and the year-on-year decline could be attributed to the entire market slowdown. Another reason is that their new energy vehicle business will not be started until the second half of this year. 500 BYD electric vehicles will be launched on Shenzhen roads during the National University Games (opening on August 12th), including 200 electric buses and 300 electric taxis, and these vehicles will keep running after the event.

Before the massive launch, 50 BYD electric taxis have been in pilot running in Shenzhen for 13 months. The mileage per vehicle has topped 130,000km, equivalent to the mileage of a six-year-old private car. During the pilot running, their battery capacity and range were stable. No accidents or safety problems occurred.

Therefore, BYD is quite confident in their new energy vehicle business. They will start massive delivery of electric vehicles in the second half. Most of the delivery will be electric buses. Besides, they will launch E6 for private consumers in the second half.

Wang Chuanfu expects substantial profits from the new energy vehicle business in three years, as he believes the massive pilot running of the electric vehicles will boost the marketization of the electric vehicle industry.