BYD car sales in 2010 will target 25% down

Chinese auto and battery maker BYD Company Limited (BYD Co., Referred to as: BYD shares) Wednesday said it has lowered its forecast for 2010 vehicle sales by 25% due to weaker domestic demand, and large companies becoming more interested in cars inhibited the production of current models.

After 2009, more than the United States as the world's largest auto market, the Chinese auto market during the first half of this year remained high growth, but growth began to slow down the last two months, in part because the government repealed a number of car incentives. Analysts expect China's auto sales in the second half growth will slow further.

In Warren Buffett (Warren Buffett), a holding company in 2008 bought 9.89% stake in BYD shares, the company has attracted the attention of the international community.

BYD said in China later this year launch its first electric car remains unchanged.

BYD shares of auto exports general manager Li Zhu Hang (Henry Li) to Dow Jones Newswires (Dow Jones Newswires), said after the Chinese market demand and existing production facilities and effective assessment of capacity, the company's car sales this year will be target from 800,000 down to 600,000.

Hang Li Zhu said the Chinese auto market growth is unlikely to go on forever, and its growth rate will gradually become normal. He added that the company plans to launch several new models in the second half, which will squeeze some of the original capacity. BYD plans to launch the new models will be much larger than the existing models, more powerful, and often have higher profit margins, because of its price than the smaller, higher auto configuration does not complete.

BYD shares in the first half of this year's vehicle sales to 289,014 vehicles, up 63%, but only to achieve its original goal of 36% of annual sales. Hang Li Zhu said adjusted sales target for 2010 is still higher than 2009 sales of 34%, and the company expects overall auto sales in China this year, an increase of 20%. BYD shares in 2009 to 448,000 vehicles sold.

By economic growth and a series of government subsidies and incentives to promote the car, overall vehicle sales in China last year reached 1,360 million, an increase of 46%.

China's auto market this year continues the momentum of this rapid growth, but current growth rate is decreasing, partly due to higher base of comparison last year. 1 at the end of 2009, China introduced some measures to boost the automotive industry, including the TM to subsidies, and for half a small car purchase tax rate to 5% for several months to promote the vehicle sales increase.

But this year China's cancellation of a number of incentives, and purchase tax rate to 7.5% (still less than 10% of normal rate). However, China will also TM to the amount of subsidy of RMB 3,000-6,000 yuan from the previous increase to 5,000-18,000 yuan (about 738-2,657 dollars).

BYD shares continued development of electric vehicles, this family has Zai said the Hong Kong listed companies, electric car or could become a company's main profit source. Li Zhu Hang Wednesday reiterated that the company still expected to launch later this year, all electric vehicles E6, and added that the first target will be the celebrities and environmentalists.