13 December 2019
BYD Starts Sales Of E6 Electric Car To Individuals In China

The Big Picture: GREEN CARS

With policy blessing from Beijing, China’s green car manufacturers are stepping on the gas in their production and sales targets, fueling hopes that the nation’s new-energy vehicle goals will gain some traction. Among the various players, BYD Co. (01211.HK) is taking the lead with an ambitious plan. 

The Shenzhen-based firm aims to sell 20,000 hybrid and pure electric automobiles this year, a huge jump compared to last year when it sold only about 2,000 such vehicles, its chairman Wang Chuanfu {王傳福} said on Thursday.

BYD expects to sell 15,000 units of Qin, a hybrid car, and 5,000 units of pure electric automobiles — the e6 and K9 models — in 2014, Wang said in a post-results media briefing in Hong Kong. The company has sold 2,500 green cars so far this year, he said.

“This year will be a turning point of our new-energy car segment as we expect to receive a lot of new orders,” Wang said. The Qin model is likely to be welcomed by the market as it is affordable for families purchasing their first cars, he said, also pointing out that the vehicle can shift between electric and combustion modes to suit different use on roads.

US-based automaker Tesla Motors Inc. has made some progress in sales of its green cars in mainland China but it is unlikely to be in direct competition with BYD as the American firm targets high-end users, Wang said. “We are focusing on the mass market as our Qin model is priced at an affordable range for first-time car buyers.”

BYD plans to launch its Tang model, another hybrid car, in the fourth quarter this year.

In other comments, Wang said that although the central government in Beijing has unveiled supportive measures for new-energy car makers, some local governments still have a protectionist mindset as they favor their local firms. Fortunately, the situation has been improving recently, he said.

As sales of automobiles in key Chinese cities are likely to double in the coming six years, or grow at about 15 percent annually, BYD will enjoy tremendous opportunities in the market, Wang said.

Corporate debt seen under control

There is no evidence of default or incomplete settlement on 100 billion yuan (US$16.05 billion) worth of corporate debt under government monitoring, China Securities Journal reported Friday, citing the National Development and Reform Commission (NDRC). About 20 billion yuan worth of corporate debt has been settled. Meanwhile the NDRC wants local administrations to ensure smooth payment of such debt to protect investors, the report said.

Bond investors skittish over Chinese developers

Prices and trading volumes are falling in the US$47 billion bond market over growing worries about the health of Chinese property developers, the Wall Street Journal reported Thursday. Some of the most poorly rated bonds are not trading at all and some have fallen up to 7 percent this month, analysts were quoted as saying. Yields on a five-year dollar bond issued by Evergrande Real Estate Group Ltd., a debt-laden Guangzhou-based home builder, have risen to 11 percent from 8 percent at the end of last year, the report said. 

– Contact HKEJ at [email protected]