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BYD
BYD
BYD aims to dominate China’s electric car market with a trillion yuan in sales by 2025
PUBLISHED : Monday, 20 November, 2017, 8:31pm
UPDATED : Monday, 20 November, 2017, 10:53pm
A vehicle undergoing acoustics testing at BYD’s headquarters in Shenzhen, China. Photo: Bloomberg
Daniel Ren
Daniel Ren
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BYD chairman Wang Chuanfu has drawn up an ambitious plan for the Chinese carmaker, envisioning the creation of a new-energy corporate giant with sales of a trillion yuan (US$151 billion) by 2025, nearly 10 times its revenue last year.
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“We want different teams to create synergies with each other while giving a full play to their own specialities,” he told company officials on Sunday, according to a statement.
Wang, 51, who is also the firm’s president, said BYD will eventually evolve into a pioneer in providing a complete set of new-energy solutions for clients.
His remarks were made at a ceremony to mark the 23rd anniversary of Shenzhen-based BYD whose annual sales were valued at 104 billion yuan in 2016.
BYD is part owned by Warren Buffett’s Berkshire Hathaway and is often dubbed China’s Tesla since it specialises in electric and plug-in petrol-electric hybrid vehicles.
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SCMP - Sentifi - Top themes and market attention on
[Wang Chuanfu, chairman and president of BYD. Photo: Nora Tam] The chairman announced that BYD will conduct a drastic restructuring to form a new industry chain, a move designed to chase rapid growth in the coming eight years.
BYD’s different divisions including passenger vehicle, commercial vehicle, battery and electronics will be developed into various “clusters of businesses,” he added. “In 2025, our aim is to achieve sales of 1 trillion yuan.”
BYD was established in the 1990s, initially as a battery manufacturer before it started building vehicles in 2003.
Wang, ranked the 39th richest mainlander by Forbes, defined BYD as more than just a manufacturer of batteries and cars, pushing hard his message that BYD will take advantage of the increasing demand for new-energy vehicles to expand scale.
Beijing has been encouraging the development and production of vehicles that run on clean energy to cut pollution.
Wang predicted earlier this year that all vehicles on the mainland will be completely electrified by 2030.
In September, BYD launched its first sky-rail project in China’s northwestern city of Yinchuan.
It also plans to open its first assembly plant in Canada.
China, the world’s largest auto market, is expected to produce about 800,000 new-energy vehicles annually in the next few years, according to UBS analyst Hou Yankun.
Xu Heyi, chairman of carmaker BAIC Group, forecast that electric-vehicle production in China could reach a million units next year.
Global carmakers including General Motors, Volkswagen and Ford have either planned to ramp up production of “green cars” or have set up new joint ventures to churn out new models of electric vehicles on the mainland.
Incentives such as cash subsidies and distribution of free car licencee have boosted sales of electric and plug-in hybrid cars since 2014.
Chinese authorities also raised their requirements for auto companies to build more clean vehicles.
Those who fail to meet the requirements will face fines.
Last year, sales of new-energy vehicles on the mainland hit 336,000 units, a jump of 63 per cent from 2016.
This article appeared in the South China Morning Post print edition as: BYD aims for sales to hit 1 Trillion yuan by 2025
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Its Middle Eastern neighbours tried to choke the small Gulf state, but in effect forced Qatar to find creative solutions, new trade routes, and push reforms at a faster pace
Kim Jong-un and Donald Trump impersonators in Singapore. Photo: AP
Russian spoons chosen as official instrument of the World Cup
Tropical storm? Life goes on in China
Trump and Kim sign letter following talks in Singapore
The historic moment Donald Trump and Kim Jong-un met
Inside China’s 'sitting centre', where mums spend US$11,000 a month to stay with their babies
Remembering chef, author and TV Host Anthony Bourdain
Sportfishing master catches 75kg black carp
Plastic waste chokes Asia’s oceans
Why Singapore is hosting the Trump-Kim summit
Families of US soldiers missing since Korean War hope Trump-Kim talks will bring loved ones home
Before life-changing gaokao, Chinese students rip up textbooks to destress
Crayfish rips own claw off to escape hotpot
A drug addict lights an improvised pipe on the street in downtown Sao Paulo, Brazil. Claims that a homeless Brazilian woman was ordered to undergo forced sterilisation are sparking accusations of a nightmarish dystopia. Photo: AFP
Mark Sanford was beaten in South Carolina by Katie Arrington, who repeatedly highlighted his past criticism of President Donald Trump
Russian opposition activist Alexei Navalny leaves a detention centre in Moscow after being imprisoned for 30 days for planning protests against President Vladimir Putin. Photo: AP
National Economic Council Director Larry Kudlow suffered a heart attack earlier in the week, but has now been discharged from hospital with Trump saying he looks forward to him coming back to work. Photo: Tribune News Service
People feel more comfortable chatting on closed platforms in countries where it can be dangerous to express political views openly, such as in Malaysia and Turkey
US Secretary of State Mike Pompeo said Kim Jong-un will not receive sanctions relief until after North Korea has been completely disarmed. Photo: EPA-EFE
‘Tell me why you murdered my daughter!’ Jiang Yue’s father shouted in the courtroom while pointing at the defendant
“China could be a little bit upset,” US President Donald Trump (pictured on Friday) said on Monday as he pledged to pursue punitive tariffs against $US50 billion in imports from China. Photo: AFP
A woman passes by a ZTE building in Beijing, China, in May. Photo: AP Photo
‘This is one of the most important collections of royal jewellery ever to come to market’
Venezuela supreme court rejects challenge to President Maduro’s re-election, derided as a sham by critics
The cryptocurrency was trading at US$6,238, amid a US criminal probe into its meteoric surge last year
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