Chinese online ride-hailing platform Senmiao Technology will purchase another 500 vehicles from BYD. The automobiles are expected to be delivered to Senmiao by March 2021.
With this second order, Senmiao has ordered 1,000 of the anticipated 5,000 vehicles it will buy from BYD by the end of 2021.
Xi Wen, Senmiao’s Chairman and Chief Executive Officer, stated, “We are pleased to have made our second order of 500 EVs from our partner BYD, given the positive reception of EVs from our initial order in November 2020. We anticipate continued strong demand for our finance and leasing offerings with the development of our online ride-hailing platform in Changsha as the ride-hailing market returns to normalcy following the impact of the pandemic in 2020. Our core markets Chengdu and Changsha are excellent examples of a paradigm shift throughout China in the ride-hailing market, as the onset of ride-generating aggregation platforms such as Gaode Map and Meituan are helping to balance the competitive dynamics across the industry. We feel that Senmiao is in an advantageous position with both growing brand recognition and strong working relationships with manufacturers, technology providers and large E-commerce platforms. We are currently focused on expanding our share in the Chengdu and Changsha markets where we generated over 1.3 million rides or orders in the last calendar quarter of 2020. Furthermore, we are confident that we will be able to successfully replicate our model in new markets this year.”
A Profitable EV Company
BYD has reported strong sales of its vehicles, including the Han luxury car, which debuted in July. The Han is outselling its rivals from both Nio and Xpeng Motors.
BYD’s Han EV’s long-range pure electric version has a single-charge range of 605 kilometers (376 miles) based on the NEDC test cycle.
In other recent news, BYD announced in December that it received a large order to deliver another 406 pure electric buses to the Colombian capital of Bogota. The order was just weeks after it completed the delivery of 470 pure electric buses to the city.
BYD and Berkshire Hathaway
In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value over twenty-fold.
© 2021 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.