By Christian George
The Chinese electric vehicle giant, BYD, today said plans are on top gear to acquire Yi’an P&C Insurance Co.
This is a move to start up an insurance arm, targeting electric vehicles, Caixin reported earlier this month.
Yi’an P&C Insurance Company was seized alongside eight others by Chinese regulators two years ago.
BYD, the world’s biggest seller of battery electric vehicles and plug-in hybrids with sales of 1.86 million cars last year, said on Monday that it expected its 2022 net profit to be more than five times the amount it booked a year earlier, Reuter reported.
EVs are expensive to maintain and is posing a serious challenge to insurance companies.
BYD’s move to acquire an insurance company may not be unconnected with Tesla’s insurance affiliate which was launched in August 2019, with promising rates of up to 30% lower than competitors.