China’s electric carmaker BYD wants gasoline-powered cars image

Best known as the Warren-Buffet backed company, BYD is a Chinese automaker of electric fame, but it now wants to stage a revival of the traditional gasoline-fueled vehicles.

The company’s car sales jumped 25% to more than 250,000 units in the first six months of this year, outpacing China’s overall auto market growth rate of 11%. The vast majority of those were gasoline-powered, not electric.

Shenzhen-based BYD said on Sunday its first-half net profit rose to 426.9 million yuan ($69.74 million), well ahead of the 16.3 million yuan it earned in the same period a year earlier, helped by strong auto sales and an improvement in its solar cell business.

The gasoline car sales, which account for half of BYD’s revenues, has raised investors’ hopes that the company is once again starting to live up to the promise that attracted big-name backers such as Buffett.

Also, profits from those gasoline cars, as well as from selling batteries for mobile phones and other handheld devices, can be funneled into expensive research and development of electric cars, solar panels and other futuristic green technologies.

Via Reuters