BYD for the second time receive NEV subsidy in March

Shanghai (Gasgoo)- BYD Company Limited said on March 10 the Xi’an Finance Bureau will allocate to its subsidiary BYD Automobile Co.,Ltd RMB1,983,510,000 of central government subsidy for new energy vehicle (NEV) promotion that occurred in 2018, of which RMB1 billion has been paid.

This is the second time that BYD received such kind of subsidy in March. On March 2, the company claimed another subsidiary BYD Auto Industry Co.,Ltd scored RMB1,342,260,000 of NEV subsidy occurring in 2017.

The Shenzhen-based automaker said the newly-received subsidy will help BYD improve its cash flow, speed up the turnover of receivables, and decrease the financial expenditure and debt-to-assets ratio.

As a leading NEV manufacturer in China, BYD has been posting downturn in NEV sales for eight consecutive months. Part of the blames should be laid on the phase-out of NEV subsidy effective on June 25, 2019. In accordance with a policy issued in last March, local governments were requested to annul subsidies on purchases of new energy cars after a three-month grace period.

As the novel coronavirus spread countrywide, BYD saw its Feb. NEV sales nosedive 80.57% year on year to only 2,803 units. For the first two months, NEV sales totaled 9,936 units, plunging 76.95%. Saddled with the free-falling beginning and the subsidy phase-out, BYD need make greater efforts to revive sales and profit.

The BYD Han, a fire new model to BYD's “Dynasty” series, is said to hit the market in the third quarter. According to Wang Chuanfu, BYD’s chairman and president, the Han will be equipped with the company's self-developed “blade battery”, which will endow the vehicle with a NEDC-rated range of up to 605km.