News

New BYD Hybrid Gets Jump in Electric Car Wars in China

Tuesday 2 Dec, 2008

After five years of toiling in the alternative energy trenches, Biyadi (BYD) is set to introduce its new model, the F3DM plug-in hybrid car. With this launch, BYD will reach the hybrid market, will indeed originate it, two to three years earlier in China than the overseas auto giants. For the first time, a Chinese automaker is leading in auto technology and China’s electric car market may become the new battlefield of global car producers.

The Ministry of Industry and Information Technology recently added the F3DM into its new car catalog, and will allow its sale in 14 cities in China. BYD announced it will hit the market on December 15.

Wang Jianjun, assistant to general manager of BYD, said the price had not been finally decided upon, but the rumored 15,000 yuan was certainly too low. But, Wang said, the F3DM is very advanced in technology and will be highly competitive with any rivals in costs, since the company has stuck to a vertically integrated production chain.

He said the company hopes the central government will support the new car model through taxation, usage, and in other ways, just as European countries and the US have done with some of their own models. Wang said that every battery costs about 50,000 yuan before mass production, but that the price will drop to about 30,000 yuan when the production volume reaches 100,000.

Despite its leading position and the hope of favorable government policies, for BYD, there’s still a long way to go. Price and consumer demand are the biggest obstacles for acceptance of the F3DM.

In the traditional auto area, BYD can always follow the leading companies in their market approach, but as the new leader in the new Chinese electric car market, BYD will need to define and explore the market on its own.  

BYD has followed leading companies after entering the auto industry with its and its successful F3 and F0 series in the small and medium car area with high quality and low price. In the medium and high class auto market, which is not price sensitive, its F6 series has faced greater obstacles.