ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
Business

China's BYD to raise funds for eco-friendly car development

GUANGZHOU -- BYD plans to raise up to 15 billion yuan ($2.4 billion) through a private placement of new shares and intends to use some of the money to develop environmentally friendly vehicles, the Chinese company said Thursday.

     The automaker will issue yuan-denominated A shares in mainland China. A formal decision on the plan will be made at an extraordinary shareholders meeting July 21.

     BYD aims to spend 6 billion yuan on expanded production of lithium-ion batteries for green vehicles and 5 billion yuan on electric vehicle and plug-in hybrid development. The remaining 4 billion yuan will be used as working capital and put toward bank loan repayment.

     BYD reported net profit of 120.94 million yuan for the January-March quarter. Profitability has stagnated amid slowing growth in China's auto market. With sales of standard gasoline-fueled cars still poor, the automaker's biggest challenge will be to revive sales of eco-friendly vehicles.

Get unique insights on Asia, the most dynamic market in the world.

Offer ends September 30th

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

{{sentenceStarter}} {{numberReadArticles}} free article{{numberReadArticles-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media