BYD didn’t get to where it is today without generous subsidies from the government, which began giving a decade ago to fiscal incentives to help the industry prosper.
Stepping into 2019, it’s clear that this season its NEV sales will be .
China began scaling back the subsidies at 2017–they’ll go away completely from 2020–and BYD’s gain. Net gain for 2018 dropped to $413 million, a fall of over 31% compared with the previous year, based on full-year earnings amounts yesterday (pdf, p. 2). The group is calling a rosier first quarter, although both NEV and fossil-fuel automobile sales dropped in January and February compared with preceding months.
Correction, March 28: This narrative earlier stated that the January and February figures were the first ones where yearly NEV sales overtook fossil-fuel ones. BYD’s monthly NEV earnings have been ahead of the fossil-fuel ones as July.
The group rolled out the world’s mass-produced (paywall) hybrid a decade past, but during last year, it still sold more fossil-fuel vehicles yearly than new energy vehicles, which includes pure electric automobiles and plug-in hybrids.
BYD sold near to 250,000 of these in 2018, double its sales in the category in the previous year, and just 25,000 units short of its fossil-fuel vehicle sales in 2018–the nearest gap so far between both groups.
This ’s changing as its NEV earnings have caught up fiercely in the past several decades, still showing strength even as China’s fossil-fuel automobile market last year posted a revenue decrease for the first time since 1990 amid an economic downturn. Year NEV sales in China grew by more than 60%.