BYD have suspended production of their minivan range before it has even begun according to media reports which cite a lack of investment as a major reason.
In August 2008 BYD bought Changsha based Midea bus company with a plan to make electric buses and invest 3 billion RMB into the factory.
In the last half of 2010 BYD was hit by a string of issues, the biggest being a sudden drop in sales with April 2010 sales being down 12% over April 2009 sales, continually poor sales left BYD with a shortage of cash to invest in other areas. The proposed mini â€“van was set to enter BYDâ€™s â€˜C Sales Networkâ€™ which is targeted at suburban and rural car buyers.
BYDâ€™s decision to shelve the minivan project may not have only been down to a lack of investment funds, the shrinking rural market may have been a deciding factor. The â€˜Cars to the Countrysideâ€™ program which saw subsidies given to car buyers from rural areas ended late last year and subsequently saw a large drop in minivan sales in the first quarter of 2011, sales are down 5.6% over 2010â€™s first quarter sales.