Warren Buffett-Backed BYD Shrugs Off China Blockades - New Style Motorsport

The company reported Tuesday that its sales of electric and plug-in hybrid vehicles soared 313% in April from the same month a year earlier. headquartered in shenzhen revolutionary soldier it sold a record number of 106,000 units last month in mainland China.

BYD had already had a good start to the year.

Sales of all its vehicles rose 423% in the first quarter of this year, according to preliminary figures released last month. It is the second largest automaker in China in terms of sales of pure electric vehicles. just behind Tesla (TSLA).

April’s stellar performance showed that BYD is “fully resistant to the Shanghai city lockdown and [the] industry supply chain disruption,” Citi analysts wrote on Tuesday.

That’s thanks to its “vertical integrated supply chain,” they added. Apart from vehicles, BYD is a major manufacturer of both battery and automotive chips, which it uses in its own cars and also sells to other car manufacturers.

This integrated business model made the company less vulnerable to supply chain disruptions during ongoing lockdowns in China, while rivals had to cut production due to chip and battery shortages.

Covid lockdowns are causing chaos in the world's largest car market

Hit of rivals

child (LITTLE BOY) it said on Sunday that it delivered just 5,074 vehicles in April, down 49% from March. The company had to suspend production for a few days last month as Covid restrictions hit suppliers in Shanghai, Jiangsu and Jilin.

At least 27 Chinese cities are under some degree of Covid lockdown, affecting around 180 million residents, according to CNN’s latest calculations last week.

Li Auto also posted a 62% drop in car deliveries in April, compared to March, citing “supply chain issues.” In a statement on Sunday, Shen Yanan, the company’s co-founder and chairman, said some of its suppliers had halted production entirely as Covid-19 cases surged in the country.

“This had a huge impact on our production this month, resulting in delays in the delivery of new cars,” he said.

Tesla, which ranks first among all-electric brands in China, has yet to reveal its April sales data but will be closely watched as it had to suspend production in Shanghai for a few weeks, starting March 28. .

Elon Musk’s electric vehicle maker reported strong sales in March, delivering 65,814 cars from its Shanghai factory, up 85% from a year earlier.

The company restarted production. on April 19, according to state-run Xinhua, and even wrote a letter to the Shanghai government expressing his gratitude, according to Reuters.

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