Correction: The dollar price of the Yangwang U8 should be $150,060; the previous version incorrectly stated $1,500,060.
By the end of the year, Yangwang aims to open more than 90 directly-managed stores in more than 40 cities in China.
(Image credit: Yangwang)
In addition to its personalized brand Fang Cheng Bao, BYD's (OTCMKTS: BYDDY) premium Yangwang brand is also rapidly expanding its sales network.
Yangwang's first 22 stores have opened for trial operations, covering 21 cities including Shanghai, Shenzhen, Chengdu, Hangzhou, Suzhou and Qingdao, the brand announced yesterday.
By the end of the year, Yangwang will open more than 90 directly-managed stores in more than 40 cities in China, the brand said.
BYD officially launched the Yangwang brand on January 5, and on September 20 launched the brand's first production vehicle, the Yangwang U8.
With a starting price of RMB 1,098,000 ($150,060), the Yangwang U8 is the most expensive model under the BYD umbrella to date.
On September 28, Yangwang said it opened its first store, located in Shanghai's bustling business district and tourist destination, the Bund.
Unlike the dealer sales model used by Shenzhen-based BYD, Yangwang will use the direct sales model currently used by the major new car makers in China.
Yangwang's sales channels will include showroom stores, which will be located in carefully selected locations in urban shopping districts and will mainly provide sales and product experience services, and center stores, which will provide more functionalities including brand experience, sales, delivery, and after-sales services.
Yesterday, BYD's personalized sub-brand Fang Cheng Bao said it began trial operations for its first 70 directly-managed stores.
Fang Cheng Bao is a brand launched by BYD on August 16, and its first model, the Bao 5, began accepting pre-orders on August 25, with a pre-sale price range of RMB 300,000-RMB 400,000 yuan.
Fang Cheng Bao's first stores will also utilize a directly-managed model to ensure consistency in service and experience quality, BYD previously said.
BYD's profitability is expected to improve further with the upcoming deliveries of the higher-priced Yangwang and Fang Cheng Bao models.
BYD's net profit attributable to shareholders in the third quarter was a record RMB 10.41 billion, up 82.16 percent year-on-year and 52.59 percent from the second quarter, according to its financial report released yesterday.
The company's gross margin in the third quarter was 22.12 percent, a record high since the third quarter of 2020. The company's gross margin was 18.72 percent in the second quarter, compared with 18.96 percent in the same period last year.
BYD sold 824,001 new energy vehicles (NEVs) in the third quarter, up 52.96 percent year-on-year and 17.12 percent from the second quarter.
($1 = RMB 7.3170)