BYD net profit more than doubles, but growth likely to slow

BYD, the Shenzhen-based batter and car maker that counts Warren Buffett among its investors, saw its first-half net profit more than double year-on-year to US$356.4 million, the Wall Street Journal reported. However, Wang Chuanfu, the company chairman, said he expects “modest growth” in the Chinese auto industry in coming months. Helped by Beijing’s stimulus measures, BYD sold 450,000 cars in 2009, compared to 170,000 the previous year. Sales in the first-half of 2010 came to 286,000 units, up 58% year-on-year, but just 36% of the company’s initial full-year target. This target was revised downwards by 25% to 600,000 vehicles earlier in August. Car manufacturing accounted for 54% of BYD’s first-half revenue. The company plans to set up regional sales offices in North America and Europe, with the US launch of its all-electric car, the e6, set for the later this year.