Warren Buffett-Endorsed BYD Sees 37% Decline in February Vehicle Sales

BYD Co Ltd, the Chinese electric vehicle manufacturer supported by Warren Buffett’s Berkshire Hathaway, experienced a significant 37% drop in their February 2024 sales compared to the same month last year. This decline snaps the company's previous growth trajectory.

February Sales Performance

In February, BYD reported sales of 122,311 new energy vehicles, which encompasses both electric and hybrid models. This figure contrasts sharply with the 193,655 vehicles sold in February of the prior year. Notably, this decline includes a substantial decrease in overseas sales, with only 23,291 units sold internationally.

Transition to New Energy Vehicles

Underlining its commitment to green transportation, BYD halted production of traditional fuel-powered vehicles in April 2022, shifting its focus entirely to new energy vehicles. Despite this strategic pivot to environmentally friendly options, both the battery electric vehicles (BEV) segment and overall sales took a hit. The company sold 54,908 BEVs this February, a near 39% decrease from the previous year, and a 48% drop from January 2024 sales figures.

A Shift in the EV Market

Last year, BYD made headlines by overtaking Tesla in the fourth quarter as the leading seller of battery electric vehicles. During that period, BYD sold approximately 526,000 units, surpassing Tesla's sales of about 485,000 vehicles. Berkshire Hathaway has been a long-term investor in BYD, investing around $230 million in 2008 for a 20.49% stake. Since then, Berkshire has decreased its holdings to approximately 87.6 million BYD H shares, equal to a 7.98% stake.

This February sales drop signals a potential shift in the electric vehicle market and BYD's growth momentum, warranting close attention from investors and market analysts alike.

BYD, Sales, EV