Warren Buffett-backed Chinese automaker BYD Company Limited BYDDF, which announced multiple price increases this year due to increasing production costs driven by inflation, had some good news to share about its most recent new products.
What Happened: Preorders for the new Han variants BYD that were launched Saturday suggest strong interest in these vehicles, the company said, according to CnEVPost.
The two new variants, namely Han DM-i and Han DM-p, have clocked preorders of 12,098 in about 10 hours following the opening of presale. Han is BYD's flagship mid-size luxury sedan, available both as all-electric and plug-in hybrid versions. It was first launched in July 2020.
With Han DM-i and DM-p, the Han brand now has four variants. The new variants are priced between 216,800 yuan ($35,082) and 322,800 yuan ($50,745).
In February, a traditionally slow month for Chinese auto sales, BYD sold 9,290 units of Han brand vehicles, CnEVPost said. This represented a nearly 85% year-over-year increase, but a 27.3% drop from a month ago.
Related Link: Warren Buffett-Backed BYD's Export-Focused Yuan Plus Model Launched In China: What You Should Know
Why It's Important: The introduction of new models and variants gives users choices. This is particularly important as the world slowly but steadily transitions to EVs and competition intensifies.
The auto industry was plagued by chip and component shortages as the world economies emerged out of the COVID pandemic. Disruptions at suppliers have in turn upset the production plans of the industry.
The Ukraine war could not have come at a worse time. The conflict in Eastern Europe has sent prices of metals such nickel and lithium soaring. These two metals are widely used in battery manufacturing.
Incidentally, BYD also manufactures EV batteries. EV makers have responded to the cost escalation by announcing price hikes for their vehicles.
BYD shares trading over the counter in the U.S. ended Friday's session at $28.42, up 5.47%.
Related Link: Nio Close To Striking A Deal With Warren Buffett-Backed BYD For Mass Market Brand EV
Photo: Courtesy of en.byd.com
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