Cuba orders 719 cars from China’s BYD for tourist rentals
BEIJING, JULY 3
The government of Cuba has ordered 719 cars from China’s BYD Co Ltd
which it will rent out to tourists in a deal that is a bright spot for
Chinese automakers facing a weak export market.
BYD, backed by Warren Buffett’s Berkshire Hathaway Inc , declined to
immediately give a value for the deal, which it said on Friday comprises
several fuel-burning models rather than the electric and hybrid vehicles
the automaker is better known for.
Albeit small, the deal contrasts with the 13 percent year-on-year slump
in auto exports from China for January through May, according to the
latest data available from the China Association of Automobile
Chinese car brands like BYD have found a small market abroad primarily
by peddling their low-cost cars in developing countries.
However, that strategy carries risks, with CAAM blaming the export slump
on instability in Russia and other countries, a slowdown in
commodity-dependent economies and changing foreign exchange policies in
certain South American and African countries.
Exports remain a very small portion of revenue for Chinese automakers.
China exported only 70,800 cars in May compared to 1.9 million vehicle
sales overall. (Reporting by Jake Spring; Editing by Miral Fahmy)
Source: Cuba orders 719 cars from China’s BYD for tourist rentals |