After a year of hyping its electric vehicle (EV) initiatives even as sales of its traditional cars plunged, BYD (HKEx: 1211; Shenzhen: 002594) is finally waking up to the reality that it needs to focus on the present as much as the future by trumpeting early success of some of its newest gasoline-powered vehicles. The company’s shares soared eightfold in 2009 after billionaire investor Warren Buffett bought a 10 percent stake, presumably betting on BYD’s big gamble on electric powered cars. But since then its fortunes have faded considerably, with the company’s sales of traditional cars tumbling about 15 percent last year due to lack of exciting new models even as the rest of the market eked out modest growth. In the process, BYD’s shares also took a beating, losing as much as three-quarters of their value last year before bouncing back a bit over the last 2 months. Some of that bounce-back is no doubt due to a broader year-end market rally, but perhaps some is also due to guarded optimism over early success that the company is trumpeting for recently launched SUV and high-end sedan models, where BYD is competing mostly with major foreign automakers. BYD says that its G6 high-end sedan launched 4 months ago zoomed to a strong but still relatively modest 5,100 units in December, and predicted 10,000 in monthly sales for the near future. (company announcement) It also said its self-developed SUV sold 15,000 units in December, as sales of the model that went on sale last spring also accelerated toward the end of the year. (company announcement) I do find it a bit ironic that a company that is betting its future on energy saving EVs is trying to salvage its present by focusing on gas guzzling vehicles like SUVs and high-end sedans. But that said, I do have to finally applaud BYD for waking up to the reality that it needs to develop a steady stream of traditional gasoline-burning vehicles to remain a healthy company over the next few years as it promotes its longer-term electric vehicles. These early sales figures for its SUV and high-end sedan look promising, though they are still relatively modest. But if the trends continue, look for BYD’s market share, and quite possibly its stock, to regain some of its previous luster in 2012.
Bottom line: BYD could gain back some of the market share it lost in 2011 fueled by new higher-end vehicles that are showing early strong sales.
Related postings 相关文章:
◙ BYD’s New EV Plan: Hook Them With Investment 比亚迪拉美电动车之路堪忧
◙ Cars: US, Germany Clobber Japan, Domestic Rivals 美德汽车在华完胜日本和中国车商
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