China's BYD eyes luxury brands to boost profit margins

GUANGZHOU -- Chinese electric vehicle leader BYD may have no choice but to turn to its luxury brands like Denza and Fang Cheng Bao to boost profit margins, amid a relentless EV price war that has seen sales per car drop by 17,000 yuan ($2,350) on the year.

BYD announced its annual results in late March, showing a net profit for the year ended December of 30 billion yuan, up 81%. While the automobile business -- which accounts for 80% of sales -- performed well, sales per car were 134,000 yuan in the period, down 10% and the lowest in the last four years.