Global Times - BYD eyeing LA market to launch electric cars

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BYD eyeing LA market to launch electric cars

Source: Global Times
[16:55 December 10 2009]
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BYD e6

Chinese automaker BYD, which is part-owned by Warren Buffett, is likely to choose the Los Angeles (LA) area as the lead market for electric cars and it plans to start selling its electric vehicles there late next year, a BYD senior executive said.

BYD is also leaning toward LA to become its US headquarters, Henry Li, a BYD senior director who is in charge of its overseas auto business said in an interview Wednesday.

Li said the company hasn't made a decision yet, but the LA area is "at the top of the list", and it has a good chance of being chosen. The region is attractive because electric cars are "most suitable for densely populated areas with lots of air-population problems," and because the region is one of the largest and wealthiest car markets. It is also known to be the leader in adopting new technologies, he added.

California is planning to be the battleground for electric-vehicles next year. General Motors said earlier this month, it will focus on California for the Volt, a heavily electrified, plug-in hybrid car. Coca Automotive, a California-based start-up, is also targeting Southern California, as it plans to launch a $40,000 all-electric battery compact sedan by the end of next year, to be built in China using Chinese lithium-ion batteries. Nissan Motor is finishing plans for the launch of its all-electric Leaf model in the US and Japan by the end of 2010, but it hasn't said which market it will focus on first.

BYD's US launch is seen in the industry as a test of Chinese auto companies' global ambitions; if it is successful, it will make it easier to sell electric vehicles in the US market. If the launch fails, it will signal the challenging road ahead for Chinese automakers in selling electric vehicles. BYD has announced that it plans to sell the all-electric, battery-powered e6 model for slightly over $40,000, which is competitive with some bigger rivals.

Agencies and Wang Yang contributed to this story