BYD Co. Ltd., the Chinese battery and vehicle-maker that is 10% owned by Berkshire Hathaway, has reached a deal to sell 10,000 vehicles to Sudan’s state-run company GIAD Motor Co Ltd.
The cars will include both hybrid and traditional gasoline-powered vehicles, and the deal represents the company’s first major order in Africa.
The vehicles’ power systems and key components will be built in China and the cars will be assembled in Sudan. BYD has assembly plants for gas-powered cars in Sudan and Egypt.
BYD’s Sudanese partner, Giad Motor Co. Ltd., is a subsidiary of Sudan’s Giad Group, the only corporation with a license to produce vehicles in the country, as well as its largest state-owned company.
BYD’s Sale on the Rise
Despite recent turmoil in the China’s stock markets, BYD has had a strong year for global sales.
BYD’s revenues are up 21% to 30.4 billion yuan ($4.75 billion) for the first six months of 2015. Gross profits were up 21.4% for the same period at 4.6 billion yuan with car sales up 14% to 210,000 units.
Berkshire and BYD
In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 9.1% of the company.
For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the 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.