On Sunday, BYD Co. Ltd. announced that it stopped the production of traditional gasoline-powered vehicles last month.
Instead, China’s largest electric vehicle maker now manufactures full electric and plug-in hybrid cars.
The firm mentioned that it would continue to offer existing customers improved service and after-sales support.
At the same time, it would still supply spare parts throughout the life cycle of gas-powered units.
The move came as the company aspired to focus on electric and hybrids in the automobile sector.
Its decision is also a response to Beijing’s pledge to boost green energy consumption. The world’s second-largest economy aims to achieve a carbon peak by 2030.
At the same time, China intends to reach carbon neutrality before 2060. Moreover, BYD has signed up for a global campaign to phase out combustion engine vehicles by 2040.
It joined other carmakers, Volvo, Ford, General Motors, Mercedes-Benz, and Jaguar Land Rover.
Automakers, including Toyota, have found the transition technology a profitable market.
Last week BYD reported an impressive 36.00% year-over-year increase in revenue last quarter. Accordingly, the company has benefited from an electric-vehicle boom in China.
The automaker mentioned that sales of new energy vehicles (NEV) surged to 104,878 last month.
This figure came in higher than the 24,218 a year earlier, marking its highest monthly sales.
It also sold 286,329 new energy vehicles from January to March, higher than the previous record of 54,751. Remarkably, this record represented a jump of 423.00%.
Subsequently, BYD’s Qin and Song car models are an easier sell for customers who would not go all-electric.
Their popularity helped the Chinese firm be the world’s best-selling maker of new energy vehicles.
BYD partners with Shell
Last month, BYD inked a strategic cooperation agreement with Shell. In the deal, they would set up a mobility service provider partnership in Europe.
The British oil giant would provide membership services for BYD customers on its charging network. In addition, they would also develop fleet solutions and charging services.
At the same time, the firms would also form a joint venture in China to develop a vehicle charging network. It would begin with 10,000 EV charging terminals in Shenzhen.
Shares of BYD closed 2.68% or 0.97 points higher to $37.08 per share in regular Asian trading.
In the first two months of 2022, BYD holds 16.00% of the NEV market share, while Tesla has 13.00%.