Benzinga | Sep 30, 2020 04:32AM EDT

Buffett-Backed BYD Says Demand Strong For Luxury Electric Sedan In China

Electric automaker BYD Auto Co. Ltd. a unit of BYD Company Limited (OTC:BYDDF), revealed there is strong demand for its latest luxury sedan at the Beijing auto show, CNBC reported Wednesday.

What Happened: The Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) Chairman Warren Buffett-backed electric vehicle company said orders for its "Han" electric cars crossed 40,000 within two months of launch, according to CNBC.

The automaker reportedly delivered 4,000 sedans in August. The car is priced between $33,000 to $40,000. A hybrid version is available for nearly $32,000, as per CNBC.

Rival automaker Xpeng Inc (NYSE:XPEV) told CNBC that demand for its P7 luxury sedan is also rising. The vehicle is said to have the longest range among electric cars sold in China at 438 miles (706 kilometers).

"We continue to have strong expectations that P7 will grow in (the) coming months into next year," said Xpeng President Brian Gu.

Xpeng will achieve profitability in a "few years," according to Gu, who did not provide further details.

Why It Matters: Tesla Inc (NASDAQ:TSLA) derives one-fourth of its revenue from China as of the second-quarter, CNBC noted.

Chinese manufacturers are gearing to compete with Tesla and are not overly concerned about the Elon Musk-led company's plans to launch a $25,000 electric vehicle.

Gu told Bloomberg this week that if Tesla raises its Shanghai plant's output to one million vehicles annually it means the "market has grown so much faster and bigger than what we anticipated."

Nio Inc (NASDAQ:NIO) CEO William Li said battery cost decrease will help promote EVs, as per Bloomberg.

Price Action: BYD OTC shares closed 3.28% higher at $14.16 on Tuesday.

Photo by John Lloyd on Flickr