BYD (1211) said there is no such thing as a "China Evergrande (3333) of the auto industry" among China’s mainstream carmakers, responding to recent rumors labeling BYD as a cash-strapped gameplayer in the market.
China Evergrande, once the country's top-selling property developer, has become the world's most indebted real estate company and triggered a major liquidity crisis in China's property sector.
Li Yunfei, general manager of branding and public relations at BYD, wrote in an online post that the asset and liability situation of China’s mainstream car companies is better than that of foreign automakers.
He said he has seen a large number of articles insinuating that BYD is the "Evergrande of the auto industry." However, BYD has experienced rapid growth in recent years, while some other companies have stalled – with their new energy business even falling significantly behind – he said.
Li added that the company has already reported relevant evidence and will pursue legal accountability.
Previously, Great Wall Motor (2333) chairman Wei Jianjun warned in an interview that signs of a property market-style crisis like that of Evergrande had already appeared within China’s auto industry. Although no companies have collapsed yet, the risks are clear, he said.
STAFF REPORTER
