BYD has reported in the first six months of 2012 a 94 percent profit drop in comparison to the same period of 2011.
Build Your Dreams (BYD) Chinese automaker has reported in the first six months of the year a whopping 94 percent profit drop. The fall has to do with decreasing sales in domestic market but also internationally. The company said that they expect an overall loss this year of about 75 – 95 percent.
Between January and June 2011, BYD achieved a net income of 275.4M Yuan, while in the same interval of 2012 the net income plummeted to just 16.3M Yuan. Officials from the company said that this fall has to do with the “changing economic situation at home and abroad”. BYD’s best years were 2009 and 2010 when sales grew significantly but this was put to a stop during the middle of 2010 when the local government ended the car-buying subsidies.
This huge loss is also related to the firm’s solar panel business which has been hemorrhaging money for quite a while.