BYD and Daimler Extend Partnership in Electric Vehicles image

BYD and Daimler have expanded their JV in electric vehicles by nearly half.

Friday, March 1st, the two companies announced that will each invest $69 million in BYD Daimler New Energy Technology, part of the 50-50 alliance BYD and Daimler set up in 2011. The joint venture had a combined investment of 860 million yuan and reached a capital of 2.36 billion yuan. According to BYD, the increased capital will give the JV the possibility to ‘aggressively’ develop clean-energy vehicles and offer competitive products.

BYD said that for 2012 revenue dropped 4% to 46.7 billion yuan and operating losses reached 320 million yuan, compared with 2011 when operating profit was 1.4 billion yuan. BYD’s target is to sell 6,000 EVs and 2,000 electric buses by the end of this year, an increase from 1,700 EVs and 700 electric buses sold in 2012. Last year in China automakers sold 12,791 EVs, doubling the 2011 sales number.

”We are not only selling cars; we want to export business models to overseas markets, including business plants with partners or by ourselves,” said Wang Chuanfu, chairman and CEO of BYD.

Stella Li, senior vice-president of BYD, said that the automaker plans to build an electric-bus plant in California and that the location will be decided during the first quarter. The initial production capacity will be 100 buses in 2014 and reach 500 units in 2015.