BYD suspends minivan project due to lack of capital

Share Our Knowledge With Your Friends, Contacts And Co-Workers

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 –van was set to enter BYD’s ‘C Sales Network’ which is targeted at suburban and rural car buyers.

BYD’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 ‘Cars to the Countryside’ 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 2010’s first quarter sales.

About the author  ⁄ 

No Comments

Leave a Comment

See News by Industry
Industry News China Green Auto News Spy Shots China Auto Culture
See News By Brand
Acura China Acura China Aston Martin China Aston Martin Audi China,FAW-Audi Audi China
Baojun Auto Baojun Beijing Auto Beijing Auto Group Beijing Auto Beijing Auto
Besturn Auto, FAW Besturn Besturn BMW China BMW China Brilliance Auto Brilliance Auto
Buick China Buick China Baojun Auto BYD Baojun Auto Cadillac
Changa,Chang'an Chang'an - Chana Changfeng Changfeng Changhe Auto Changhe
Chery Auto Chery Chevrolet China Chevrolet Chevrolet China Chrysler
Citroen China Citroen Dodge China Dodge Dodge China Citroen DS
Dongfeng Auto Dongfeng Geely Emgrand Emgrand Geely Emgrand Englon
FAW,First Automobile Works FAW Ferrari China Ferrari Fiat China Fiat
Foday Auto Foday Ford China,Changan-Ford Ford Guangzhou Auto Guangzhou Auto
Geely Auto Geely Geely Auto Gleagle GoNow Auto GoNow
Great Wall Great Wall Hafei Auto Hafei Haima Haima
Hawtai Hawtai Honda Honda Huanghai Yellow Sea Auto Huanghai (Yellow Sea)
Hyundai China Hyundai Infiniti China Infiniti JAC China JAC
Jaguar Jaguar Jinbei Jinbei JMC JMC
Kia Kia     Jaguar Land Rover
Landwind Landwind Lexus China Lexus Lifan Auto Lifan
Lincoln Lincoln Youngman Lotus Youngman Lotus Luxgen Luxgen
Mazda Mazda Mercedes China Mercedes MG - Morris Garages MG
MINI China MINI Mitsubishi China Mitsubishi Nissan China Nissan
Opel China Opel Opel China Peugeot Reely China Reely
Renault Riich Riich Riich Roewe
Rolls-Royce China Rolls-Royce SEAT SEAT Senova Senova/ShenBao
Double Ring Double Ring - Shuang Huan Sichuan Yema Sichuan Yema Skoda Skoda
Double Ring Smart Subaru Subaru Suzuki Suzuki
Toyota Toyota Volvo Volvo Volkswagen Volkswagen
Zotye Zotye   Others    
Sign up today to receive China Car Times weekly newsletter!
Your name
Your email