Battery And EV Maker BYD Profit Up 162% in 2020, On Increased Demand

The China-based automotive subsidiary of BYD, BYD Auto Co., Ltd. reported stellar profit numbers, up 162 percent for the year 2020, yesterday. The sharp profit growth are on the back of increased demand worldwide for its electric vehicles, especially buses, where it is a global leader.

BYD’s net income reached 4.2 billion yuan or USD 644 million in 2020, with operating revenue escalating to 153.5 billion yuan, according to its annual report. The company has also predicted that first-quarter profit will also grow 166 percent in 2021.

Investing legend Warren Buffett’s Berkshire Hathaway holds a stake in BYD Co. the firm is listed on the Hong Kong and Shenzhen Stock Exchanges, with revenue and market capitalization each exceeding RMB 100 billion.

Being founded in February 1995, the company has established over 30 industrial parks worldwide and has played a significant role in industries related to electronics, automobiles, new energy, and rail transit. BYD auto took shape in 2003 with an acquisition.

Recently in January 2021, BYD had announced that it has won cumulative orders to supply 1,002-unit pure-electric buses (E-buses) to the capital of Colombia, Bogotá. This was the largest order for pure-electric buses outside of China the firm has received to date, which sets a new record in sales volume for the overseas pure-electric bus industry. Three of BYD’s global strategic partners finally adopted BYD’s integrated electric bus solutions for their bids and successfully won the tender, a total of 1,002 pure electric buses.

Not only this but, back in December 2020, BYD delivered the first batch of 120 buses of 470 bus models while the remaining 350 units were announced to be delivered by the first quarter of 2021. Like the 470 bus models, this batch of 1002 buses also includes 9-meter and 12-meter models.

In the same month, Ideanomics has announced that its Mobile Energy Global (“MEG”) and its contracting entity Qingdao Chengyang Medici had signed an agreement with Meihao Chuxing, a joint venture between BYD and Didi, to purchase an initial 2,000 units of model BYD D1. The ride-hailing vehicles are intended for deployment in multiple cities within China, with deliveries expected to begin in H1 2021.

The firm has a strong presence in India too, which is a 70,000 buses per annum market. With more and more state transport undertakings being incentivised to shift to EV’s, BYD, present here since 2007, has been in the thick of the energy transition here too. In partnership with  Olectra India, its local partner, the Chennai headquartered firm has invested close to $150 million in its India operations. The Indian subsidiary has two factories, covering more than 140,000 square metres. The business covers mobile components, solar panels, battery energy storage, electric buses, electric trucks, electric forklifts, chargers, rail transit.  India hopes to add over 1000 electric buses each year, with the numbers progressively going up with higher indigenisation levels.

Using its Lithium iron Phosphate batteries, the firm claimed an over 50 percent share of the electric bus market till last year.