BYD’s New Auto Insurance Business Earns $2.6 Million in 1st Half of 2024

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Many are conscious of Tesla’s insurance coverage division. It acquired plenty of publicity, together with right here on CleanTechnica. However do you know that BYD, the biggest plugin car producer on the earth*, additionally now sells its personal automotive insurance coverage?

Sure, beginning in Could 2024, BYD started promoting auto insurance coverage in addition to vehicles (and batteries, and forklifts). So, how is that insurance coverage for BYD’s many, many electrical automobiles going? Apparently, very nicely!

The corporate pulled in RMB 67.26 million ($2.4 million) in income from its new insurance coverage division. That’s from “a report dated July 30 and recently posted on the website of the Insurance Association of China,” CNEVPost writes. Eradicating prices, that led to RMB 18.46 million ($2.6 million) in internet earnings.

Simply trying on the 2nd quarter, BYD’s insurance coverage division earned RMB 6.04 million ($850,000) in internet earnings.

Background on BYD Insurance coverage

The BYD background story is a bit attention-grabbing. “The China Banking and Insurance coverage Regulatory Fee (CBIRC) accredited BYD’s acquisition of 100% of E An Property & Casualty Insurance coverage Co Ltd on Could 6, 2023. Three years in the past, the troubled and scandal-plagued insurance coverage firm owned by Tomorrow Holding was seized by authorities.

“On Could 12, 2023, E An Property & Casualty modified its title to Shenzhen BYD Property & Casualty Co Ltd, certainly one of 4 specialised on-line insurance coverage corporations in China.

“BYD Property & Casualty was authorized to conduct insurance business in several regions in May this year, marking the operation of BYD’s insurance business unit is officially on track.”

Attention-grabbing. … Not figuring out a lot about it, I discover it curious and shrewd that BYD purchased a failed, seized insurance coverage firm to be able to begin up such operations.

Tesla Insurance coverage in China

I additionally was not conscious of Tesla’s auto insurance coverage historical past in China. However, apparently, plainly was delayed for and abruptly is shifting ahead below a brand new method. “Tesla sought regulatory approval to sell insurance products in China more than three years ago, when it registered a company in 2020, but canceled that registration in April of this year,” CNEVPost writes. Nevertheless, Tesla then “registered an insurance brokerage in China in late July, according to a national corporate information database.” Hmm … curiouser and curiouser.

*BYD sells much more plugin automobiles than Tesla, however Tesla nonetheless leads BYD in pure BEV gross sales — we predict (we’ll see what Q3 numbers present).