Warren Buffett-backed BYD relishes success of newly launched Dolphin car model as sales top 10,000 units in December

Shenzhen-based BYD sold 10,016 Dolphin cars in December, within five months of its launch in August
BYD, controlled by billionaire Wang Chuanfu, sold 93,945 pure electric and plug-in hybrid vehicles in December, an increase of 225.7 per cent from a year ago

BYD

Daniel Renin Shanghai

Published: 8:15pm, 4 Jan 2022

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BYD is enjoying the success of its latest electric vehicle (EV) model in China, as the Warren Buffett-backed company hit the 10,000 delivery milestone for the first time last month.

The Shenzhen-based company, in which Buffett’s Berkshire Hathaway owns a 7.9 per cent stake, sold 10,016 Dolphin cars in December, within five months of its launch in August, according to a statement filed to the Hong Kong stock exchange on Tuesday.

Monthly delivery of 10,000 vehicles is seen as a major threshold for defining a powerful player in the mainland’s car industry.

“BYD is not a direct rival to Tesla in terms of products and targeted customers,” said Chen Jinzhu, chief executive of Shanghai Mingliang Auto Service. “But the rising volume of sales and deliveries could help hone its image as a leading EV builder, hence woo more customers.”

Berkshire Hathaway owns a 7.9 per cent stake in Shenzhen-based BYD. Photo: Costfoto/Barcroft Media via Getty Images

The hefty sales increase of Dolphin cars showed that BYD has grasped both manufacturing might and design capabilities that appeal to consumers in the world’s largest EV market, Chen added.

BYD launched the Dolphin hatchback at the Chengdu Auto Show in August, which starts from 93,800 yuan (US$14,760) after subsidy.

The basic edition is equipped with a battery capacity of 30.7 kilowatt-hour (kWh) giving it a driving range of 301km.

The premium version, fitted with a 44.9 kWh battery pack, has a range of 401km and is priced at 121,800 yuan after subsidy.

01:47

Behind the scenes at BYD Auto: China’s biggest electric vehicle factory

Meanwhile, Tesla delivered a record 308,600 vehicles worldwide in the fourth quarter of 2021, up 27.9 per cent from the previous quarter, the company said on Sunday.

Tesla, which moved its headquarters to Austin, Texas, from Palo Alto, California, is also the runaway leader in China’s premium EV segment.

BYD, controlled by its billionaire founder Wang Chuanfu, sold a combined 93,945 pure electric and plug-in hybrid vehicles in December, a year-on-year jump of 225.7 per cent. From October to December, BYD sold a record 266,204 units, 14 per cent short of Tesla’s global sales in the same period.

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BYD, established in 1995 as a battery manufacturer, began building cars in 2003 and has evolved into a major carmaker in China.

Under the “Made in China 2025” industrial strategy, Beijing hopes its major EV companies can grasp core technologies in the industry and secure a leading position worldwide.

BYD is believed to have the potential to gain a solid foothold in the global market, buoyed by its strength in car batteries.

The company’s blade lithium iron phosphate battery packs have been increasingly well received by other car assemblers over the past year. The battery cells are arranged in such a way that it increases their energy density while enhancing their resistance to overheating.

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New round of mass testing in Xian, the northwestern city at epicentre of China’s Covid-19 outbreak

BYD suffered a setback last month as it had to cut production at a factory in Xian, capital of northeast China’s Shaanxi province because of lockdown measures following an outbreak of Covid-19.

The company said that it would do its utmost to minimise the negative impact from the lockdown.

BYD built the first phase of its assembly line in Xian seven years ago, with an initial annual capacity of 300,000 units. In 2018, it invested a further 2 billion yuan to expand these facilities, boosting the annual capacity to 500,000 units.