Chinese automaker BYD Co. reports profit decrease of 86% YOY image

For the firs nine months of 2011, B.Y.D. Co reported a 86% fall in profit compared to last year and for sure isn’t the only car maker affected by diminishing sales and reduced profit margins. The world’s largest auto market, China, is registering less sales than estimated, while auto makers reported drop in profits or even losses.

BYD car maker, which also makes batteries, phone handsets and energy storage equipment, owned by billionaire businessman Warren Buffet, estimated a full year sales diminished by 35 to 65 percent, with a slight revival in the fourth quarter.

In the first 9 months of the year, the company’s sold 326,379 vehicles (-15.5% compared with a year ago). Thus the profit diminished with 86%, reaching 352.7 million yuan ($55.5 million).

During the third quarter, the returns increased 10.95%from last year, while the net profit grew with 582% , for a total of 77.37 million yuan ($12.23m). T sales were increased with 9,1% (to 94,024 vehicles) compared to a year ago, due especially to new models launchings.

At the end of last week, BYD launched e6, its first pure electric car, developed for personal users.

In 2010, China registered 18 million vehicles sold. Nowadays, despite the fact that the number of vehicles sold in September in China registered a rise of 5.5 percent versus previous year figures, the overall trend is far away from the high expectations created by the results from previous years. One of the causes that determined the slowdown is believed to be the fact that the government stopped tax incentives and subsidies for small vehicles and van buyers.