Chinese automaker BYD, the one also backed by Warren Buffett, announced that its profits fell 89% in the first half of 2011 due to lower vehicle sales, tougher competition and higher labor and material costs.
BYD’s cars include the F3 compact, the F6 mid-sized sedan and the F0 city car. What didn’t help the slumping sales however, was the government’s tax incentive for the vehicle purchases of the electric BYD cars.
Despite the dive in profits, BYD said that they will “continue to propel the progress of the commercialization of electric vehicles and further increase the market expansion efforts for new energy automobiles in the domestic and overseas markets.”
– By: Chris Chin
Source: Automotive News