China’s BYD Automotive triples its year-on-year net profit

By Matt Brogan | March 16th, 2010

China’s BYD (Build Your Dreams) Automotive has reported a net profit increase to 3.79 billion yuan (AUD$608 million) for 2009, more than tripling its 2008 figure of 1.02 billion yuan (AUD$164 million).

Domestic sales have skyrocketed for BYD vehicles delivering 450,000 units last year alone. Of those, some 290,000 were BYD’s popular F3 (a Corolla-sized sedan).

BYD says roughly 53 per cent of its revenue was derived from car sales with the brand also manufacturing batteries and mobile phones.

Next year, BYD plans to extend its operations in to North America as it prepares to launch an all-electric crossover vehicle dubbed ‘e6′ (pictured above).

The Chinese manufacturer believes this new model, coupled with the planned export sales of other BYD vehicles, could eventually account for 10 per cent of its business.

Tom22

Nice Camry and Honda Odyssey

Simon

The Chinese are experts at copying!
Jon Leong

Actually, its a last gen Corolla + last gen honda odyssey.

Jon Leong

last-gen U.S. Corolla that is.
Who?

Looks like a Toyota WISH to me rather than an Odyssey

http://CarAdvice The Salesman.

This is the automotive future.
The Chinese are the world’s best copiers. With Geely’s pending acquisition of Volvo we will see a sudden explosion of unexpected safety and quality coming from China. It will be very difficult to argue with the value on offer from Chinese auto manufactures. As the good news stories start to spread globally so will the demand for their products.
What’s the result? With all the profit gone forget the flashy new car showrooms as factory owned distributors pop up in supermarkets around the country you will be able to upgrade your car along with your mobile phone plan. You would probably get a free shamwow as well.

AB

I basically agree with you, and soon you just wont be able to compete when your chinese competitors have such low overheads however..

I have had many people within manufacturing circles quote to me that the Koreans are like the Japanese and will strive for improvement, whereas the chinese are not so driven for the same qualities.

Based on some of the corner cutting by the chinese I have seen experienced when manufacturers go offshore I would say safety but particularly quality will always be more of an issue.

From what I have seen, quality improvements in china have usually been forced/driven by the foreign partners

ChineseDriver

competition is a good thing for the customers.

Chinese cars = improve build quality and safety features

Current market leaders = improve value for $$$

AB

Just because something is cheap, doesn’t mean it is good value!

kzx33

it is common to say “Just because something is expensive, doesn’t mean it is good value” but “Just because something is cheap, doesn’t mean it is good value”? what is the logic here?

G

… our most probably we will see the sad end of Volvo, which would be a shame.

http://www.onlinejackpotgambling.com pokies

Yes thats right they are the master of copying products. But the price is so competitive which turns alot of customers to buy cheaper version. Hopefully they can improve the quality of car.
thecat

Australia can only dream to produce such cars – cheap and beautiful.
Glen

Of course your profits triple when you use slave labour. Anyone who buys a Chinese made car just because its cheap will realise soon enough you get what you pay for.

shag

You do not find slave labour in a car manufacture in China, they live rather good life. Where you find slave labours are those shoe/clothes manufacutures such as NIKE, and you should blame them for 100x profits, but you never dare to blame.

ChineseDriver

come on you people, what kind of ‘copy master’ will copy a old version corolla? Is there really much to copy from that plain design??

The Chinese cars are successful is not because they copied someone’s design, it is because they are good value for $, and the quality isn’t bad either! And regarding BYD, they are making electric cars already (BYD was originally a battery manufacture many years ago), which is ahead of some the AUS local manufactures!

By the way, it is too stupid and ignorant to say Chinese car manufactures use slave labour, these manufactures are competing in a very huge but also tough market, they cannot afford to do these illegal things, just to save some labour cost.

Perhaps we should view Chinese cars more rationally, rather than so much bias and grumbles.

Yonny

It depends on what you call slave labour. If what I’ve seen on tv on various SBS documentaries is to be believed, most Chinese factory workers seem happy with their jobs, and indeed are happy to have what are for them high-paying jobs.

But some of company-supplied living conditions leave a lot to be desired – at least from our point of view (I’m thinking about shared dormitory accommodation, and accommodation that seems quote spartan to western eyes). Also, some of the employment conditions seem a bit harsh – required to work compulsory overtime, little to no job security for example. Perhaps we are just spoilt here in Australia.

Anyway, you are right, it is wrong and misleading to suggest China uses slave labour for car manufacturing.

As for China not copying car designs, well, not so sure about that.

gary

It is getting better for the workers. Every country had or will have this kind of days, only difference is european done that 100 years ago, japanese 50 years ago, …

Any way, there is no doubt a few major chinese car brands will become big names, it is just plain fact and no way to reverse it. Pressure on local car industry is enormous, either build much better cars that no one can match, or just vanish.

Lazybones

Well it certainly blows away my original theory of BYD standing for “Build Yourown Dud”.
The Original Stevo

Brilliant – another way to smuggle drugs into the country. Hope customs take these apart and check them thoroughly.
Jason

It has become a common tactic when criticising Chinese made products. Copy and Slave labour.

There is so much similarity among different modern cars. China is relatively new in terms of car manufacturing. Would it be a surprise that they use some current designs, just like Japan and Korea did before? I think this is a good tactic and consumers will accept it easily. If Toyota and Honda don’t complain about being ‘copied’, why do you guys so worry about it?

It is naive to say China uses slave labour. You simply can not compare China’s salary directly with that of Australia. It got to be measured in ‘Real Purchasing Power’. I have been to China. Food and clothing are much cheaper in China. For example, Three Australian dollars will buy you just one cup of beer in an Australian pub. In China, three Australian dollars will buy you at least FIVE cups of beer!

Quality? you only want to pay two dollars for an item but you expect it can last forever?

China is quickly catching up. We should NEVER underestimate it.
pirakavezok

Yes, it is a common misconception that all products from China are of inferior quality. Unknown to many, China is actually capable of producing quality high quality products – if buyers are prepared to pay for it. In the automotive business, China is a new player so don’t expect ground breaking technology from them. But, hang on, they learn fast and will leapfrog many car producing countries in a matter of a few years.
It wasn’t long ago when China got Siemens to build their high speed train system from Shanghai to Pudong. They have since gone on their own to build an impressive rail network. Recently, President Barrack Obama asked China to help upgrade the American train network.
To see what China is capable of, just look at the evolution of Japanese technology since world war II & cut half the time.
ohreally

You cant compete with labour from China.

The fashion industry has pretty much given up trying to catch the copycats who rip off their brands. (sometimes its the official supplier running a parallel production operation )

The labour is cheap, and it will stay cheap for quite some time yet.
I wouldnt be surprised if the Chinese were suppressing the value of their own dollar, to remain the export king of the world.

If they do start exporting BMWs from China I at least hope they arent built to the standards of the fourwinds suv… youtube that one