Core Viewpoint - Berkshire Hathaway has exited its investment in BYD, marking the end of a 17-year relationship that generated significant returns for the American investment firm [1][2][3] Company Summary - Berkshire Hathaway's energy unit marked the value of its BYD shares as zero as of March 2025, as reported in a filing to the U.S. Securities and Exchange Commission [2] - The investment began in 2008 when Berkshire Hathaway acquired a 10% stake in BYD for approximately $230 million, with shares trading at around HK$8 each [4] - BYD has achieved a market capitalization exceeding HK$1 trillion in Hong Kong and 975 billion yuan ($137 billion) in Shenzhen, with its chairman Wang Chuanfu now being China's 11th richest person with a net worth of $24.4 billion [5] Industry Summary - BYD is expected to miss its 2025 sales target of 5.5 million electric vehicles (EVs) globally due to intense competition and regulatory pressures against discounting strategies [6] - Deutsche Bank forecasts BYD will deliver 4.7 million cars globally in 2025, while Morningstar predicts 4.8 million [6]

Core Insights - Despite high tariffs imposed by the EU on Chinese-made electric vehicles, Chinese automakers have successfully adapted their strategies to penetrate the European market, achieving a 121% year-on-year increase in sales in April, totaling over 53,000 units [2][3] - The market share of Chinese automotive brands in Europe has risen from 2.4% in April 2024 to 4.9% in April 2025, driven largely by the sales of plug-in hybrid and hybrid vehicles [2][3] - The total share of electric and plug-in hybrid vehicles in new car registrations in Europe reached a record 26% in April, significantly influenced by Chinese brands [2] Sales Performance - In April, the sales of plug-in hybrid vehicles (PHEVs) from Chinese brands surged by 546%, with total sales rising from 1,493 units in April 2024 to 9,649 units in April 2025, capturing nearly 10% of the European PHEV market [4] - BYD's performance was particularly notable, with pure electric vehicle sales reaching 7,231 units in April, a 169% increase, surpassing Tesla for the first time [4] - Overall, the sales of new cars in Europe in April were 1,078,500 units, with pure electric vehicles accounting for 184,000 units (17% market share) and PHEVs for 97,715 units (9% market share) [3] Market Strategy Adjustments - Chinese automakers have shifted their focus to plug-in hybrid and hybrid vehicles to circumvent the EU's high tariffs on pure electric vehicles, allowing them to expand their product lines in Europe [3][8] - The growth in hybrid vehicle sales in Europe is attributed to a market shift, as electric vehicle sales growth has slowed due to subsidy reductions [8] - The total sales of hybrid vehicles in Europe from January to April reached 1,285,400 units, with a market share of 35.3% [8] Localization Efforts - Chinese automakers are increasingly investing in local production to adapt to European market demands, with companies like BYD and Chery establishing local manufacturing and R&D centers [15][14] - BYD plans to establish a European headquarters in Hungary, focusing on sales, after-sales, vehicle certification, and local design [15] - Chery has partnered with local firms to produce vehicles in Europe, marking a significant step in integrating into the local automotive landscape [14]