BYD to boost capital spending to raise auto production

BYD Co. said it plans to boost capital spending by 59% in 2010 to expand its automobile production amid robust domestic demand. China replaced the U.S. as the world’s biggest auto market last year, when sales in the country soared 46% to 13.6 million units, as the government introduced measures to encourage auto purchases in the aftermath of the global financial crisis. Shenzhen-based BYD benefited from those measures, which helped the company more than double its sales to 450,000 units in 2009. The carmaker reiterated its target of selling 800,000 cars this year. BYD, which was thrust into the spotlight after a company controlled by Warren Buffett bought a 9.89% stake in the firm in 2008, said it has set aside 10 billion yuan (US$1.46 billion) to expand three auto manufacturing facilities and launch its first fully electric car in the U.S. The company recorded a net profit of 3.8 billion yuan (US$555 million) for the year on sales of 9.5 billion yuan (US$1.39 billion), compared with a year earlier profit of about 1 billion yuan (US$146.48 million) on sales of 26.8 billion yuan (US$3.93 billion). (March 16, 2010)