BYD VP talks on BYD’s sales drop – it’s part of the plan, stupid.
Posted by: Dent Removal / Category: AutomobilesStella Li, BYD’s latest VP gave some insight to The Wall Street Journal as to why BYD’s sales have gone south for the past two years after a sterling 2008 and 9. Stella reveals that this is part of BYD’s master plan to capture the second time car buyer who is readying to swap their first car for something a little better, hence BYD’s introduction of the S6 SUV and the soon to launch G6 sedan. How this plan will play out is anyone’s guess, but it did always appear that BYD’s gasoline engine line up was really just a stop gap measure until the electric car scene took off – but that take off hasn’t yet appeared in China or the USA.
From the WSJ:
Thanks to a nagging slump in car sales, Warren Buffett-backed Chinese battery producer and auto maker BYD appears to be running short of funds to carry out its ambitious plans for electric cars and other “green” technologies. The big question: When will BYD’s sales of gasoline cars rebound?
While most industry observers are doubtful about the prospects for an early recovery, Stella Li, a key BYD executive now based in the U.S., said the company expects sales of gasoline cars to start posting year-on-year growth again by the end of the second quarter next year.
Of course, that is well at least half a year from now, and in the mean time BYD is likely to continue to report dismal business results. Sales of BYD’s gasoline cars have slipped every month since August last year.
Still, Ms. Li expects the turnaround to happen because Chinese consumers are responding positively to new cars BYD launched recently – most notably a new car-SUV crossover called the S6. The company also has high hopes for an upcoming sedan called G6. Both are larger and supposedly more upscale than compact cars BYD has focused on since they entered the car business in 2003 when it took over a small car maker in Xian.
“Our strategy is to focus more on premium-feel cars, and we are also focusing on introducing more green cars,” Mr. Li said in a recent telephone interview from Los Angeles, where BYD’s U.S. operations are headquartered. “Our target is to turn vehicle sales around by Q2 next year,” she said, referring to the second quarter of 2012.



















