BYD is among several Chinese automakers whose fortunes have risen as sales took off last year, largely thanks to government tax cuts and subsidies aimed at boosting demand, especially for energy-efficient small vehicles.
BYD's net profit soared to 3.79bil yuan (US$555.5mil) in 2009, the automaker reported late Sun, up from 1.02bil yuan the year before.
BYD, which stands for Build Your Dreams, has the backing of billionaire investor Warren Buffett. His MidAmerican Energy Holdings, the utility division of his Omaha, Nebraska-based flagship Berkshire Hathaway, has a 9.9% stake in the Hong Kong-traded company.
BYD sold nearly 450,000 vehicles in 2009, up 170% from a year earlier - reaping gains from economies of scale. Of that total, about 290,000 were its popular F3 sedan, which topped monthly sales for much of the year.
It has ambitious plans for growth, including major capacity expansions in China. The company plans to export up to one-tenth of the 800,000 vehicles it plans to make this year, up from less than 3% of its total sales last year. It is also considering a location for a US headquarters to spearhead sales of an all-electric crossover vehicle, the e6, in the American market, as early as this year.
BYD started out as a battery maker and just switched to building cars in the past decade. In 2008, it became the first automaker to launch mass production of a plug-in hybrid electric vehicle - the F3DM - that's sold in China and can be charged off a standard home outlet.
The company recently signed an agreement with Daimler AG to jointly develop electric vehicles for the fast-growing Chinese market. Daimler said today that the two companies envision a "comprehensive technology partnership" that would result in a vehicle specific to the Chinese market's requirements.
BYD acquired bus maker Hunan Midea Coach Manufacturing last year, aiming to expand into bus and electric bus manufacturing. The company also has announced plans to build a new factory in the northern city of Xi'an, with an annual capacity of 400,000 vehicles a year.
It is not alone is reaping a bonanza from surging demand. Chongqing Changan Automobile, a partner of Ford and Mazda, reported last week that its net profit surged by more than 40-fold last year to 1.08bil yuan (US$158mil). - AP
