A leader in the production and marketing of electric and hybrid vehicles, BYD benefited from government policies that increased subsidies to consumers purchasing energy efficient cars. Sales tax exemptions applied as well. Intense competition moderated sales growth of the company’s gas-powered cars, however.
The company expanded international sales of its electric buses and taxis. And worldwide interest in energy efficient cars drove growth of the company’s car battery business. In addition, the rapid growth of smartphones resulted in a sharp increase in the company’s handset component and assembly business.
BYD began as a rechargeable battery manufacturer and now is the world’s largest. It entered the car business in 2003, acquiring Xi’an Tsinchuan Auto Company, Ltd. BYD was listed on the Hong Kong Stock Exchange in 2002.
Net income increased almost 600 percent year-on-year to $90 million in 2013, on a 15 percent revenue improvement to $8.1 billion. Revenue continued to increase during the first half of 2014, but net income declined slightly.