There have been some rumors that some of BYD's dealers have been upset by a lack of payment of cash rewards to them from BYD for sales success. Mr. Lin says these problems are out of date and have long since been resolved. He said BYD currently has 1,000 independent dealers in China. BYD itself owns none of the dealerships. He said the company plans to keep growing its dealers, but always with a focus on quality not quantity in a given year.
There has been much in the news lately about Beijing's restrictions on vehicle licenses in the capital to control pollution and congestion. Recent IPO and Beijing car dealer Lentuo International (LAS) has been hit hard by this news as investors have been concerned that there will be fewer auto sales locally as a result. Mr. Lin said that Shanghai had had such restrictions for a while and the Chinese auto market has kept growing. The big opportunity, he said, for all auto companies is growth outside the major Chinese cities.
BYD has big ambitions, a big friend in Uncle Warren, and is in a great position being a leader in Chinese electric cars at a period where the market there is growing by leaps and bounds. Investors in the U.S. need to pay much more attention to the company but be cautious given the lack of profits to date. If the company can demonstrate that it has a much firmer grasp on future revenue projections, it will help restore confidence in the stock once more.
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