BYD Co. to Enter Western Europe Electric and Hybrid Market

Strategic Insights -

BYD Co., the automaker backed by Warren Buffett, is poised to start selling electric and hybrid cars in western Europe next year. The company, China's sixth-biggest car manufacturer by sales last year, plans to introduce the E6 electric car and potentially design and build cars in Europe. This move comes as consumers in developed markets seek to reduce emissions and curb spending on gasoline. BYD has already teamed up with Daimler AG to develop electric vehicles in China and plans to begin selling cars in Europe and the U.S.

Key Takeaways:

  • BYD plans to start selling electric and hybrid cars in western Europe next year, becoming the first Chinese company to market alternative energy-powered vehicles in the region.
  • The E6 electric car is among the models BYD plans to introduce, with a range of 200 miles on a single charge.
  • BYD has partnered with Daimler AG to develop electric vehicles in China and may eventually design and build cars in Europe.
  • The company has also signed a separate agreement with Volkswagen to explore cooperation in areas including hybrid cars and lithium battery-powered electric vehicles.
  • BYD sold 48 of its F3DM hybrid vehicles last year to corporate and government customers in China, but has not yet started selling the E6 model in its home market.
  • Chairman Wang Chuanfu has stated that the company may start U.S. sales this year, with the first E6 hatchbacks arriving in the U.S. late in the year.
  • BYD has been the fastest-growing Chinese automaker last year and has a 10% stake owned by Berkshire Hathaway Inc.

Statistics:

  • BYD sold 48 F3DM hybrid vehicles last year in China.
  • The E6 electric car can travel 200 miles on a single charge.
  • BYD plans to invest more than 100 million euros($137 million) in developing electric vehicles with Daimler.
  • VW and BYD will explore cooperation in areas including hybrid cars and lithium battery-powered electric vehicles.
  • BYD was China's sixth-biggest car manufacturer by sales last year.
  • BYD's shares have declined 5% this year.

Sources:

  • BYD Co.
  • Euclid Infotech Pvt. Ltd.
  • Albawaba.com
  • Daimler AG
  • Volkswagen AG
  • CSC Securities Hong Kong Ltd.
  • Bloomberg News
  • Berkshire Hathaway Inc.
  • Euclid Infotech Pvt. Ltd.