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Live news updates: China’s BYD forecasts quadrupling of growth as electric vehicle sales soar

China-based, Warren Buffett-backed BYD said on Monday that the company’s net profit is projected to quadruple in the third quarter, as it maintains growth momentum after surpassing Tesla as the world’s largest electric vehicle maker by sales earlier this year.

BYD expects record net income of Rmb5.5bn-5.9bn ($764mn-$820mn) for the three-month period, a rise of 333-365 per cent year-on-year, citing robust EV sales and improved cost control from the end of its mobile phone unit.

The company’s Hong Kong-listed stocks rose more than 6 per cent in Tuesday trading.

EVs are an increasingly important pillar for the Shenzhen-based conglomerate. Cars and related products accounted for 73 per cent of BYD’s total revenue in the first half of the year, the company’s interim report showed.

On the back of China’s burgeoning demand for cleaner cars, BYD saw its total sales of new energy passenger vehicles, which included plug-in hybrids, pure battery and hydrogen-powered models, rise 194.37 per cent year-on-year to 538,704 units in the July-September quarter. That compares with 343,000 pure electric cars sold by Tesla.

According to the China Passenger Car Association, BYD took 29.7 per cent of China’s new energy vehicle market in the year to September, 21 percentage points ahead of the next competitor, SAIC-GM-Wuling.

The company is also venturing into overseas markets with its lower-cost models. BYD has forayed into India, Laos and Jordan in recent weeks and chose Thailand for its first wholly invested passenger car plant outside China last month.

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