Image Source: Visual China

BEIJING, June 10 (TMTPOST) — Chinese car maker BYD saw its market valuation reach one trillion yuan on Friday as its share rose by nearly 8%.

Information on companiesmarketcap.com shows that BYD's market valuation has surpassed Volkswagen to become the third largest global automaker, after Tesla and Toyota. BYD is the only Chinese carmaker in the top ten on the list.

Yu Te, an analyst at Tianfeng Securities said that market conditions have been favorable for BYD recently. In May, the car industry in China started to recover from the impact of the prolonged lockdown in Shanghai. Many Chinese cities have also rolled out supporting policies to stimulate the car market. In May, BYD broke its sales record, selling over 100,000 units in a month.

BYD’s recent announcement shows that the company sold 114,943 new energy cars in May, a drastic increase from 32,800 last year. The company has sold 507,314 cars so far this year, registering year-on-year growth of 348.11%.

BYD’s EV battery is quite successful in the market as well, according to Pang Junwen, an analyst at Guotai Junan Securities said. The company rolled out its first hybrid car in 2008 and accumulated experience in battery. BYD’s blade battery has major improvements in efficiency and energy density. Between January and April 2022, BYD’s EV battery accounted for 23% of the market share in China. Between January and March, the company’s EV battery accounted for 11.1% of the global market share.

BYD’s Executive Vice President Lian Yubo recently stated that the company will be supplying batteries to Tesla very soon.

Yu is confident in BYD’s prospects given the supportive policies and the gradual resumption of production in China. Since April this year, many cities in China have been handing out huge subsidies for car consumption.