The first concept car is expected to be unveiled at the Beijing Auto Show where it has been called the GOLF, golf of course standing for Green, Oxygen, Light, and Friendship. The GOLF concept was designed and developed by Daimler-BYD in a 50:50 joint venture which has total investment of 6 billion RMB. As a pure EV brand the Daimler-BYD cars will be up against BMW’s i3 and i5 range of cars when they finally launch.

The initial concept versions that leaked to the internet indicated that the GOLF would come with a slight hint of Mercedes B200 and also a dashing of BMW 5-series GT around the rear, however neither of these attributes can be seen in the above road testing vehicle. We don’t know too much about their first car, although the Beijing Auto Show will play host to the brand unveiling, we’ve since learned that the new car will carry a tear drop or rain drop like logo when officially launched.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Information leaked to the Chinese automotive press indicate that BYD will be attaching their new self developed dual clutch technology to the S6 in the early parts of 2012. The DCT will be paired to both the 2.0L and 2.4L offerings, the 2.0L engine is BYD’s own design whilst the larger 2.4L is a Mitsubishi donor model.

Pricing is expected to be still relatively low despite the advanced gearbox technology, pricing could potentially be from 120,000rmb and rising which is a steal considering the size of the S6.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Next Generation BYD F3 Su Rui

BYD’s rise to fame came on the back of the original F3, the F3 got Chinese consumers onto the roads in a major way in 2010 and became a ‘peoples car’ so to say. BYD’s policy of trying to make everything in house, from glass to dashboards to carpet became the unsticking point of the F3, in a rush to make as many as possible build quality suffered, complaints rose and sales sunk. Now the F3 is back as the Su Rui and seems to be a world away from the original F3.

According to media reports the Su Rui has been completely redeveloped from the ground up, including new engines, a vastly improved platform and of course the new design style that is slowly propagating its way through the BYD line up. The F3 is likely to change BYD’s fortunes when it is finally revealed and launched at the Beijing Auto Show in April this year. According to reports the F3 Su Rui is likely to make the most of a new 1.5T engine and also dual clutch gearboxes both of which were designed in house, the cars interior has also been given a make over. Spec sheets indicate that features such as reversing sensors will come as standard, although GPS/DVD systems will be optional extras.

BYD’s new design them has moved on from the blandness of yesteryear and give the company a new edge that wouldn’t make the F3 and F6 look out of place in Europe or North American roads.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Since leaving BYD in August Mr. Xia has been unheard of, Zotye announced earlier today that they have hired Mr. Xia as their new CEO and will cover all of Zotye’s business matters in the future. Zotye are planning to rapidly expand their model line up in China and abroad with new models being launched on a more regular basis. Zotye will no doubt benefit from Mr. Xia’s experience within the industry, as well as the lessons learned from BYD.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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BYD Co. (1211), the automaker partly owned by Warren Buffett’s Berkshire Hathaway Inc., rose to a two-month high in Hong Kong after the People’s Daily today reported China’s government will exempt three of the company’s electric car models from vehicle-usage tax charges.

BYD gained as much as 6.7 percent to HK$22.20, the highest intraday level since Nov. 15, before changing hands at HK$21.50 as of 1:45 p.m. in Hong Kong. The stock has risen 28 percent this year, compared with a 3.1 percent increase in Hong Kong’s benchmark Hang Seng Index.

As many as 42 electric passenger cars were exempted from payment of vehicle-usage tax earlier this month amid efforts by the Chinese government to encourage use of electricity and other alternative energy in personal transportation. The existing annual usage levy ranges between 60 yuan ($9.50) and 5,400 yuan based on engine size.

BYD, which started sales of its E6 electric cars to individual buyers in November, is counting on such vehicles for future growth as it faces slowing demand and mounting competition with gasoline-run autos. BYD sold a total of 309 E6 cars to taxi-fleet operators and individual motorists in the first 11 months of last year, according to the China Association of Automobile Manufacturers.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The F3′s wheelbase has been stretched by 60mm, not a great deal but it will give rear passengers considerably more space, the internals have also been given a big update according to information we have received. BYD are moving out of their ‘fast growth’ phase and into a slower development phase with a greater emphasis on product quality and consumer experience rather than focusing on low prices.

As mentioned in other articles, BYD are developing a range of Direct Injection Turbo engines, the first one, a 1.5T unit, has already hit the product line up in the larger G5 sedan but BYD are developing a 1.2T and also a 1.8T, we can bet that the 1.2T will be sailing into the F3 as soon as it is ready. BYD has also developed its own dual clutch gearboxes which are already in the G6 sedan but will trickle down to the F3 soon.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Now BYD are planning to develop a 1.2T engine to give the F0 a torque boost, the new turbo comes as BYD are pushing their new turbo range which also includes a 1.5T and a 1.8T as well as dual clutch gearboxes to take energy saving to the next level. Adding a larger 1.2T to the F0 will likely expand sales to a wider audience and may make the F0 a popular second car choice for inner city travel.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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BYD has been actively exporting cars to North Korea for a number of years now, North Korean’s likely approve of the Mitsubishi engines that larger Chinese cars such as the BYD F6 use as local mechanics are probably very familiar with them. Pyongyang police seemed to have developed a love for BYD vehicles, hence their use of the F6 at the funeral of former Chairman Kim Jung Il earlier this week where America hating Kim was taken on his final journey on the back of Lincoln hearse.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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The BYD (F5?) will likely come in just above the L3 in price, but will have more modern safety features, styling, and more interior space thanks to a wheelbase stretched by 60mm. Additionally, the car will be available with BYD’s new 1.5L Turbo+Dual Clutch power-train. A Dual Mode plug-in hybrid version will be available too.

BYD was built on the success of the F3 and now is looking for its “second take-off” vehicle. The S6 has been an unqualified hit, becoming one of the hottest-selling SUVs in China. The more recently- released G6 has not been on the market long enough to determine its fate, but early signs are encouraging.

Will this car become as big of a hit as the F3 was? Only time will tell.

Jeff Lundblad

Graduate from the University of Illinois in Political Science, Jeff Lundblad has been following China news since age 15.

The new midsized sedan is apparently an entirely new model from BYD and bares no technological relationship to its previous cars. The G6 is currently BYD’s flagship vehicle, but this new vehicle which has so far been codenamed as ’6B’ is likely to eclipse the G6 in several areas. BYD are of course sitting in high tech heaven in Shenzhen where the vast majority of China’s IT companies have their manufacturing and R&D centers, thus the high tech supply chain is right on BYD’s doorstep. Now BYD are planning to turn their Unique Selling Point from low pricing to high quality and high technology, something that will no doubt work well.

Engine power is likely to come in the form of BYD’s new turbo units, they have already unveiled their 1.5T unit in their other models, including the G6, but larger displacement turbo engines are due to appear in the short term, we can expect a 2.0T or a 1.8T for this new model when it gets unveiled some time in the first half of 2012.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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In 2011, despite the gloomy headlines, BYD confiscated land in Xi’an was returned, their sales network underwent streamlining and readjustment, two new models, the S6 and G6 were released, the all electric K9 bus has attracted hundreds of orders from around the world; alongside the release of the e6 Pioneer fully electric crossover and the opening of BYD’s North American headquarters.

The BYD S6, released only a few months ago, is on fire with nearly 10,000 expected to have sold October alone, over 7000 units were sold in September and nearly 20,000 have been sold since the car hit the market. The S6 has been praised for its safety, quality workmanship, and plethora of high tech features that don’t usually show up on a relatively low-priced vehicle. There is no reason to think that the G6 will not sell equally as well as production ramps up in the coming months.

BYD Quality Overhaul

BYD appears to be intent on leaving its cheap low-end status behind it. In the last two years they have upgraded painting lines, hired Japanese welding experts to improve their welding processes, improved sound-proofing/sealing of their vehicles, improved upholstery quality, and with the purchase of a high precision Japanese mold factory, improved interior plastic workmanship.

Up until now, these new tricks only appear to have been used on newer models such as the S6, G6, and e6. However, BYD has announced the new 3-series for 2012. The F3, G3, and L3 will all receive slight aesthetic upgrades, several new features, and comprehensive quality improvements. More importantly, all will receive BYD’s own VVT engine which meets higher emissions standards and increases fuel efficiency. The implications of this cannot be underestimated; with the revision of China’s green car subsidy program, these models will no longer receive the ~$400 benefits. BYD seems determined not to let this happen and will re-engine the 3-series to meet the tougher standards and continue receiving national subsidies. (As a side note, the F6 is also being upgraded)

New EV Strategy

BYD’s electric vehicles have done rather poorly. The F3DM has only accumulated sales of about 10,000 units since its introduction, the e6 (including the rental version) just over 300. The K9, sometimes known as the EBus-12, is doing well as the economics of electric buses justifies additional upfront cost. The EBus-12 is selling well with reportedly some 1500 units delivered to Shenzhen city government for use within the city, other city and provincial governments have been eager to buy the bus as well, eventual sales could be very high indeed.

BYD K9

With the release of the e6 Pioneer, or personal edition, it has become clear that BYD is no longer trying to start from the bottom of the market and move upwards. Rather, with their new-found attention to detail and quality, they are starting out upscale with the hope of reducing battery weight and costs in the future. The e6 Pioneer is decidedly a very expensive car, but is also decked out with dozens of highly advanced features you would typically only find on Benz or Lexus vehicles.

Targeting Tesla

I am going to speculate a bit, but I believe the release of the e6 Pioneer signals a fundamental shift in BYD’s North American strategy as well. Instead of arriving with the “poor man’s Volt,” I dare say that BYD is going after Tesla motors. Notice the pricing of the e6, at $58,000, it is just $500 more than the upcoming base Model-S due out in the middle of next year…also around the time the e6 should arrive.

But I will go a step further. If one looks carefully at BYD’s Facebook page you will notice that BYD has two vehicles planned for North America, not just the e6. The other car has no photo, but is referred to as “Electric Sports Car.”  It would appear that BYD is seeking to take on Tesla in North America with a high performance electric sports car, furthermore Chinese language reports have been carrying reports about a new dual mode hybrid from BYD that will be able to break the 0-100kph barrier in less than 6 seconds.

Jeff Lundblad

Graduate from the University of Illinois in Political Science, Jeff Lundblad has been following China news since age 15.

We may have incorrectly reported that the S6DM would have been put in to production in 2012, but Chinese media reports are now indicating that the hybrid SUV will launch in 2013. China has not yet seen the concept version, although it’s likely to be on show at either the 2011 Guangzhou Show or the 2012 Beijing Auto Show.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The company’s operating revenues in the third quarter increased 10.95% from a year earlier, and its net profits soared 582% from a year earlier to 77.37 million yuan.

Data shows that BYD’s vehicle sales in the Jan-Sep period rose about 9.1% from a year earlier to 94,024 units. The sales of BYD’s first SUV, the S6 continue to keep the company extremely busy. The G6 was launched also launched in September. Its high-end all-electric car e6, targeting at private consumers, was launched on October 26.

BYD predicts that the company’s full-year performance will decline by between 35% and 65% from a year earlier.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Updated front grill for 2012

BYD have beat foreign competitors such as Nissan and GM to the finish line in the race to get a pure electric car into the potentially lucrative Chinese market.

BYD initially launched the E6 to fleet and government buyers in mid 2010 which allowed hundreds of E6′s to undergo real world testing as taxi’s where BYD was able to gain real world feedback on how the car performs. According to BYD, the civilian version of the E6 is greatly upgraded, voice activated navigation, a smart key system, digital TV’s and reversing cameras have been added to the E6 as standard equipment, the E6 is also wired up to the internet with a permanent 3G connection which allows E6 owners to remotely unlock or lock their cars and even find it on maps if need be, drivers will also be able to remotely turn on the AC or heating systems ahead of getting to their car make sure its just perfect. BYD have also introduce an OnStar like service for the E6 which allows users to contact emergency services, download maps and receive directions. Under the hood the electric motors can send 450Nm of torque to all four wheels on demand and produces 90kw of power which is roughly on par with a 1.8L naturally aspirated engine producing 120bhp.

Dual charging ports for fast and slow chargers

As for the charging issue, BYD has teamed up with China Southern Power Group to install fast charging facilities in the users home ahead of a mass roll out of charging stations across China.

The E6 taxi fleet was originally set at 50 vehicles in May 2010 but has since expanded to more than 300 vehicles, the original 50 have been on the roads for more than 17 months where they collectively covered more than 6 million kilometers by the middle of October this year, the longest serving member of the E6 fleet has already reached 150,000km (93,000 miles) without any major issues.

BYD have long been considered a leading EV company, their first hybrid vehicle the F3DM was introduced in December 2008, whilst their first electric buses were used during the Universaide event in Shenzhen this year, more than 300 E6′s were used in the event and 200 electric buses from BYD were put in to operation to aid with the event. BYD’s E-Bus range recently had its European premier in Belgium and they are also running on the roads in Changsha, Shenzhen and Haikou.

The initial launch price of the E6 at 369,000rmb ($57,000USD) seems high on paper, but as the technology becomes more mature then prices are expected to drop accordingly, also several cities around China are offering substantial subsidies which lower the E6′s prices considerably. Shenzhen, Shanghai, Beijing, Hafei, Changchun and Hangzhou have been set aside as test cities by the central government to see if the EV industry can be boosted by healthy subsidies, potential E6 buyers in these cities will receive up to 60,000RMB (nearly $9,500USD) from the local government and a further 60,000rmb from the national government to buy the E6 which lowers the pricing to around 249,800rmb.

What competition does the E6 have right now? It has none. How the E6 sells in China over the next 12 months will be a major indicator of how the market might head in the next few years, a lack of public charging areas maybe a drawback in the early days but with a potential 300km range the E6 wont be leaving users stranded on the way home from work in a hurry. The question remains, does teh average user need a car with a 300km range when something with a 100km range would be better suited to daily city driving? The BYD E6 has proven itself as a taxi fleet car, but can it prove itself to consumers?

Ash

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Chinese media are still reporting that the E6 will be able to go for 240-300km on a single charge thanks to BYD’s own self developed iron based batteries, top speed will be around 140kph and an 80% charge can be reached in 15 minutes.

The E6 will be the first mass marketed electric car available in China and comes ahead of the Nissan Leaf and Chevrolet Volt, both of which will launch in China this year or early 2012.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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From Bloomberg:

Los Angeles touted landing the North American headquarters of Chinese carmaker BYD Co. as a win that would generate jobs for the second-biggest U.S. city and make it a center for the growing market for electric autos.

BYD America opened today about a year behind schedule with fewer workers than first targeted. The company, partly owned by Warren Buffett’s Berkshire Hathaway Inc., has delayed plans to sell electric cars to retail buyers, citing limited availability of public chargers. Instead, it’s focusing on solar panels, batteries, LED lighting and rechargeable buses.

“Things like this are about planting seeds,” said Austin Beutner, the former Los Angeles deputy mayor who engineered the deal to bring BYD to the city, including more than $2 million in incentives. “Some grow fast, some grow slow, but you’ve got to plant them.”

Initial goals for the Shenzhen, China-based company’s California arrival haven’t been met either in BYD jobs or indirect business created. The delays reflect a combination of construction obstacles and an electric-car market that hasn’t developed as rapidly as first expected.

In April 2010 when the deal was announced, BYD said it would open the office by the end of 2010, and have 150 employees by the end of this year. It now has 20 employees in Los Angeles, with plans to reach 30 by year-end and 100 by the end of 2012, according to Micheal Austin, the company’s U.S. vice president.

BYD America will eventually grow to at least 150 people, Austin said.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Prior to the mass redundancies being announced by BYD themselves, a mystery man took to Weibo on August 29th and announced that all sales staff would be made to leave by the end of September, obviously not a very accurate prediction but it was a taste of what was to come. Soon after, BYD’s Li Yun Fei took to Weibo to say that “Only the sales departments will have transfers, there will be no disbanding of the company. Moving the sales department staff is just a way to lift the service level, and raise work efficiency”.

However, based on the words of an employee of BYD’s marketing department, the redundancies are not as easy as what Li Yun Fei said.

The employee disclosed that they received the notice on the afternoon of August 29^th, saying that the marketing department is completely removed, and about 65% to 75% of the employees will be laid off. Now the redundancies have expanded to the other departments. Now its corporate structure has shrunk to the shape it was in early 2009 and even 2008.

The company only gives one-month payment to the laid-off employees to seek other job opportunities. Some employees started resignation procedures soon after the redundancy plan was released. The above-mentioned employee also complained on his Weibo that the year-end bonus for 2008 was not granted yet, which indicates BYD may have encountered financial problems.

SusanZhao

Susan is an English major from Xi Dian University in Xi’an, she majored in Technical English and worked for the English based news company Sino Cast. She later made the move to Shanghai in 2008 and made a name for herself at a translator in the automotive industry.

From the WSJ:

Thanks to a nagging slump in car sales, Warren Buffett-backed Chinese battery producer and auto maker BYD appears to be running short of funds to carry out its ambitious plans for electric cars and other “green” technologies. The big question: When will BYD’s sales of gasoline cars rebound?

While most industry observers are doubtful about the prospects for an early recovery, Stella Li, a key BYD executive now based in the U.S., said the company expects sales of gasoline cars to start posting year-on-year growth again by the end of the second quarter next year.

Of course, that is well at least half a year from now, and in the mean time BYD is likely to continue to report dismal business results. Sales of BYD’s gasoline cars have slipped every month since August last year.

Still, Ms. Li expects the turnaround to happen because Chinese consumers are responding positively to new cars BYD launched recently – most notably a new car-SUV crossover called the S6. The company also has high hopes for an upcoming sedan called G6. Both are larger and supposedly more upscale than compact cars BYD has focused on since they entered the car business in 2003 when it took over a small car maker in Xian.

“Our strategy is to focus more on premium-feel cars, and we are also focusing on introducing more green cars,” Mr. Li said in a recent telephone interview from Los Angeles, where BYD’s U.S. operations are headquartered. “Our target is to turn vehicle sales around by Q2 next year,” she said, referring to the second quarter of 2012.

Make sure you read the rest at the WSJ

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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A BYD insider was quoted as saying that BYD are planning to reduce their sales team from 2600 people to just 800 people, with the first 1000 going this month from the sales team and a further 800 being culled from other departments. BYD’s former sales General Manager, Mr. Xia Zhi Bing, fell on his sword earlier this month and announced that he would leave the company.

BYD’s stock has fallen on hard times along with BYD’s income, profits are down 89% this year and share prices have fallen from a high of 85.5HKD to just 15.6HKD.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The G6 will come with a range topping 1.5T engine which produces 154bhp at 5500rpm which is more than respectable for a small engine and will be more than capable of dragging the G6 around town. If turbo power is not an option for you then BYD have also installed a 2.0L engine with 146bhp and 180Nm of torque both manual and CVT options are available for the G6.

We have to comment on the G6′s styling, the front is obviously Toyota Camry inspired and the rear has more than a little bit of Lexus in it but overall the G6 is coming together to become a great looking car, and quite possibly the second BYD sedan I’d buy with my own money – after the F3DM of course.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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Chinese battery and car maker BYDCo. said its first-half profit plunged 89%, hurt by intensified competition and the end of government subsidies for car buyers.

BYD said Monday that its net profit fell to 275.4 million yuan ($43.1 million) from 2.42 billion yuan a year earlier.

Revenue fell 11% to 22.54 billion yuan.

BYD, 10% of which is owned by a unit of Warren Buffett’s Berkshire Hathaway Inc., reports results under Chinese accounting standards.

The sharp decline in earnings came as no surprise. The company has been facing rising competition from domestic rivals and from Sino-foreign joint ventures that have rolled out brands in China, a low-end market that for years was dominated by small, closely held auto makers such as BYD.

BYD sold 220,131 cars in the first half, down 23% from a year earlier. In addition to facing heightened competition, the company has suffered since Beijing canceled stimulus measures for car buyers.

BYD Chairman Wang Chuanfu said in a written statement that he expects growth in Chinese car sales will remain slow in the second half. He cited weak consumer confidence amid rising inflation rates in China and lingering concerns about the European debt crisis and the financial health of the U.S.

The company recorded lower revenue for its handset division as BYD’s single largest customer delayed orders, he said.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Hertz has focused its rental NEV policy on Shenzhen owing to its favorable policies to NEV’s which see substantial subsidies being awarded to buyers. The E6 hasn’t officially entered the fleet as the cars are still in production at BYD. The cars will come fully charged from Hertz and consumers are not expected to ‘fill up the tank’ before returning them to the rental store, when fully charge and operating under city driving conditions the E6 is expected to reach a maximum distance of 200km before running out of charge.

The addition of the E6 to the Hertz fleet is a wise move by both Hertz and BYD. BYD so far have only put the E6 into taxi fleets in Shenzhen where they can gain daily data on how the cars perform, but by putting the public behind the wheel they’ll be able to gain invaluable data on useability and ergonomics, and Hertz will be able to show its green fingers and likely get the cars at a discount.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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The general sales manager position will be succeeded by BYD’s general planning manager Hou Yan. Hou Yan was BYD’s vice president for sales two years ago.

Some sources say Xia will join Jaguar after resignation, but Xia denies the rumor. His resignation indicates he leaves the company because he is looking for a new opportunity, and he wants to focus on his personal health and take up advanced studies.

Some industry insiders believe heavy pressure might be a major reason for his resignation. After a series of blows such as the dealers quitting crisis and the Xi’an plant’s being investigated, BYD started to see a sales downturn. It saw year-on-year sales decline for six consecutive months in the first half of this year, and it’s the only automaker with sales declining for six straight months. The company announced in early July that its net profits for H1 fell 85-95% from a year earlier.

SusanZhao

Susan is an English major from Xi Dian University in Xi’an, she majored in Technical English and worked for the English based news company Sino Cast. She later made the move to Shanghai in 2008 and made a name for herself at a translator in the automotive industry.

On looking at the car from the front and the side it appears to be a sedan, but in actual fact it seems to be a hatchback with a small protruding rear tail like in the style of Skoda’s more recent models and possibly more in line with the BMW 5-Series GT.

News on the powertrain seems to be very thin on the ground, its not entirely clear what the new car will be packing under the hood, but we will keep you updated as news becomes available.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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BYD got into the bus making business when they took over Hunan based bus maker, San Xiang, in a deal that would see BYD take over the dying bus makers company and inject some life into their model line up using BYD’s electrical wizardry. The result is the below K9, which is expected to be one of the first BYD’s to hit European and American roads in the near future.

The K9 measures in at (LxWxH) 12m x 2.5 x 3.3 meters and has a wheelbase of 6.2 meters making it near perfect for congested inner city roads. BYD are claiming a top speed of 70kph and a top distance of 500km per charge if speed is kept to or below 40kph, which is more than easily achieved in inner city traffic, although a more realistic figure of 250km is being touted for stop/start driving conditions.

For Chinese city fleet operators, pricing has been a major factor for adding electric buses to the city fleets. A regular inner city bus will sell from anywhere from 300,000rmb to 500,000rmb where as an electric model can come in at 1 million RMB or more.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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Shares of BYD Co fell 3.16 percent on Hong Kong Stock Exchange yesterday after its car loan joint venture collapsed.

BYD, backed by billionaire Warren Buffett, said its French partner Compagine Generale de Location d’Equipements decided to dissolve the joint venture due to concerns about increasing risks in China’s automobile market, according to a statement yesterday.

In June last year, BYD and CGL agreed to jointly set up a 500 million yuan (US$77 million) auto finance company in China to provide car loans for vehicle purchases.

The establishment of the venture, in which BYD invested 400 million yuan for a 80 percent stake, won regulatory approval on March 4.

BYD said both parties have conflicting assessments on the potential risks associated with the business and cannot reach consensus.

An end to car purchase incentives, rising fuel prices and traffic restrictions in Beijing have all crippled demand in the world’s largest auto market this year.

China’s passenger car sales fell 0.1 percent from a year earlier to 1.04 million units in May, the first pullback in more than two years.

BYD was among car makers hit by slower vehicle sales growth. The Shenzhen-based car maker has reported a 84 percent plunge in profits for the first quarter of this year after sales fell 27 percent to 119,000 units.

BYD’s share closed at HK$26 yesterday in Hong Kong. Its shares on the Chinese mainland’s smaller bourse, Shenzhen Stock Exchange, edged up 1 percent, compared to the 4.75 percent gain for the main index.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Investors started on Tuesday to subscribe to new shares of BYD Co. Ltd., the Chinese car maker backed by U.S. billionaire investor Warren Buffett, after the company set its Shenzhen share offering price at 18 yuan (2.8 U.S. dollars) per share a day before.

The company, which already has shares listed in Hong Kong, planned to sell up to 79 million yuan-denominated shares, or A-shares, in an initial public offering (IPO) on the Shenzhen bourse, according to a statement filed with the Shenzhen Stock Exchange (SSE) late Monday.

BYD chairman and founder Wang Chuanfu said the company aims to focus on new energy-related business while enhancing business in traditional cars and electronic products in an interview with the Xinhua-owned newspaper Shanghai Securities News published Tuesday.

“The strategic goal of BYD is to consolidate our global status as a leader of the secondary battery industry, develop into a leader in the sector of IT component manufacturing and assembling, and become a car maker with global competitiveness,” Wang said.

The IPO is being handled by UBS securities. Ding Xiaowen, managing director of UBS Securities investment banking department, identified BYD as a leading provider of all-round new-energy solutions, a leading Chinese car maker, and the world’s most competitive provider of mobile phone components and assembling services.

The value of investing in BYD also lies in its ability of “highly vertical integration and low-cost operation,” and “strong capabilities in technological research and development (R&D) and innovation,” Ding said.

In a statement to the SSE, the automaker, in which Buffett’s Berkshire Hathaway Inc has a 9.9 percent stake, said it planned to use the raised money to invest 400 million yuan in a lithium battery production project, 1.14 billion yuan in establishing a researching and manufacturing center, and 652 million yuan on expanding its auto unit projects.

The company’s planned IPO and new pledge to focus on battery and IT product R&D came at a time when China’s auto sales seem to be slowing after years of boom.

After overtaking the United States to become the world’s biggest auto market in 2010, China’s auto-sales growth has moderated since the start of this year as the government ended its stimulus measures that supported car purchases.

The company’s car sales rose 16 percent to 519,806 vehicles in 2010, decent growth in light of the global average but less than half of the average growth of 32.4 percent in China’s total auto industry.

In spite of a 17.8 percent increase in business revenues in 2010 compared with 2009, the Shenzhen-based company’s 2010 net profit fell by 33.5 percent from a year earlier to 2.52 billion yuan, due to fierce competition and a reduction in government incentives for auto purchases.

The company saw a decline in the profit rate of its traditionally competitive secondary battery business, which fell from 26.12 percent in 2009 to 19.77 percent in 2011.

Wu Jingsheng, BYD’s vice chairman, attributed the lower profit rate to an adjustment of the product structure in which sales of product with lower profits outperformed products with higher profits, and the rising material cost as well as a price drop in the secondary batteries.

CriEnglish later reports that share prices are likely to sell for less than their opening price by the end of the day:

Shares of BYD Co. Ltd., the Chinese automaker backed by U.S. billionaire investor Warren Buffett, which will begin taking subscriptions for its initial public offering Tuesday, are likely to fall below their IPO price in Shenzhen like many other recently listed companies, according to the executive business editor of “China Daily.”

BYD, which is already listed in Hong Kong, will raise a less-than-expected 1.42 billion yuan ($219 million) during its IPO on Shenzhen Stock Exchange, although it initially intended to raise 2.19 billion yuan. The company plans to sell its IPO shares at 18 yuan each down from the original price of 27 yuan, based on a statement it filed with the stock exchange.

Mark Hughes, Executive Business Editor of “China Daily,” said BYD’s move to lower its original IPO price was a good move, because the Shanghai and Shenzhen exchanges have tumbled about 15 percent since April high.

He added this was an indication that growth was slowing, with Italian fashion label Prada and luggage maker Samsonite raising capital that was much lower than anticipated in their respective IPOs in Hong Kong last week.

Despite such circumstances, BYD could not postpone its IPO to a later date, because it was legally committed to see it through, Hughes said.

Stella Lee, BYD’s Senior Vice President, said she would rather have waited until next year, but she was bound by the rules that govern IPOs.

Meanwhile, Hughes said he believed that shares of BYD were likely to fall below their IPO price as had happened with many other recently listed companies in China.

“Share prices in Hong Kong have fallen nearly 50 percent in about the last 10 months, and they’ve got rivals like General Motors and Nissan who are introducing cheaper models,” Hughes said. “And also China’s passenger car sales are past their boom. They had a brilliant time in the past two years, but in May the government ended tax incentives and subsidies, so that’s hit sales as well as there being a sort of saturation almost at the moment.”

Hughes also said the driving force for BYD to continue to attract investors depended on the price and quality of the new vehicles the company introduced.

“They are introducing a new series of electric vehicles in the next two years,” Hughes said. “Some of this IPO money will go towards the research and development of these vehicles, but a lot of analysts are saying that BYD attracts first-time car owners, and they’ve been undercut by their rivals, and they ought to be investing in technology to attract second-time car buyers rather than first-time (car buyers).”

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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According to BYD’s sales report, its sales in Jan-Apr decreased 23.9% from a year earlier, with sales of F3 sedan down 25%, F3 hatchback down 56%, F0 down 13%, G3 down 1.7%. However, the registration of F3 sedan in Jan-Apr decreased 38% from a year earlier, F3 hatchback up 16%, F0 up 6%, F6 down 48%, and G3 up 232%.

On the monthly basis, BYD’s posted sales results were 5% higher than the registration in January, 17% higher in February, 33% higher in March, and 59% higher in April. It may suggest BYD has been posting higher sales results on purpose, so as to raise the dealers’ morale. It also means BYD is putting more inventory pressure on its dealers.

Based on its sales performance in the first four months, it seems BYD is unlikely to fulfill its full-year sales target. Meanwhile, its stock price at the Hong Kong Exchanges keeps falling. The only hope now is to get listed on China’s A-share market successfully.

Financial strain should be the biggest problem faced by BYD. It needs money to invest in the mass production of its new 1.5TSI plus DSG powertrain system. Besides, its investment in the electric vehicle field can’t be returned in the near future.

Good sales results may boost investors’ confidence in its A shares. If it gets listed on the A-share market successfully, it may raise more than two billion yuan, which can ease the pressure on cash flow. Therefore, to exaggerate the sales results is of significant meaning.

The increasing gap between the posted sales results and the real vehicle registration also reflects the anxiety of BYD’s executives. But it’s risky to put heavy inventory pressure on dealers. Many BYD dealers quitted out of the problem last year. If BYD keeps doing this, such thins may happen again, and it will be a heavy blow to BYD.

SusanZhao

Susan is an English major from Xi Dian University in Xi’an, she majored in Technical English and worked for the English based news company Sino Cast. She later made the move to Shanghai in 2008 and made a name for herself at a translator in the automotive industry.

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.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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Chinese automaker BYD Auto initiated a fleet-scale test of plug-in vehicles in April 2010. This testing process included 50 BYD e6 taxis in Shenzhen as well as a handful of F3DMs used by the Housing Authority of Los Angeles. Representatives from BYD Auto announced initial test results from these plug-in fleets a year after vehicle delivery. The most significant results of BYD’s announcement included 1.7 million miles of all-electric travel and $360,000 in fuel savings. BYD Auto also noted that e6 and F3DM fleet vehicles have not experienced reductions in battery range over time.

Pengcheng Electric Taxi Company in Shenzhen, China began using the BYD e6 for daily routes last April. The e6 is a five-seat crossover that can travel up to 160 miles per charge with a maximum speed of 88 miles per hour. This all-electric vehicle uses an iron-phosphate battery pack that can be recharged to full capacity in 30 minutes. BYD Auto stated last week that the Pengcheng fleet represents nearly all of the all-electric miles cited above while experiencing few maintenance issues.

The Housing Authority of Los Angeles and BYD Auto noted that the F3DM achieved 88 miles per gallon in the first few months of testing. The F3DM is a more attractive vehicle for American consumers with a 40-mile electric range and a total hybrid-electric range of 300 miles. Officials with the Housing Authority of Los Angeles reported 14,430 miles traveled during testing with 4,000 miles powered by gas for longer commutes. Results of the F3DM fleet test indicate that operational savings could be 70% compared to gas-powered vehicles even when including electrical charges.

BYD Auto is taking steps in the next six months to build on these results while educating Chinese consumers about plug-in vehicles. International University in Shenzhen will receive 250 electric taxis from BYD by the end of August 2011. These plug-in taxis should save the school up to $1,167 per vehicle in fuel costs. Municipal officials in Shenzhen and Changsha committed to acquiring eBUS-12 buses with delivery starting this January. BYD Auto has indicated that the eBUS-12 can save up to $2,833 per month in fuel costs, which should compound quickly with 300 buses delivered in Shenzhen and Changsha by December 2011.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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At the moment just three models are available but this is expected to be expanded later this year, the first 2.0L manual model starts at just 89,800rmb, the second manual model is 103,800rmb, whilst the range topping 2.4L automatic model is at 129,800rmb.

The S6 has been called the Chinese Lexus but the styling is likely to be overlooked by the vast majority of Chinese consumers that just want a decent sized SUV that looks the part and is also comfortable, there is no mistaking that the S6′s price is highly competitive when compared with its competitors, chiefly the Greatwall Hover (now Haval) series of SUV’s and also Chery’s new Tiggo3 model.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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The joint venture is actually quite amicable, so far, the board of directors is made up of six people, three Chinese and three German members of staff.

The first model from the BYD-Daimler brand will be launched within the year and the first marketable product is expected to be produced in 2013.

A spy shot of the cars rendering was already leaked to the internet some time ago, it was rumored that Daimler-BYD have called the car GOLF.

FrankF

Frank entered the automotive industry via his father's instructions. He grew up with cars around him, especially as his father was a major auto restorer, Frank's childhood was spent passing beers, tools and coffee to his father whilst he explained the ins and outs of engines. Frank now works in the Chinese car industry at a specific manufacturer.

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