BYD on the move to expand lineup and capacity

• Source: Gasgoo
• [08:21 August 11 2009]
• Comments

China's battery and auto maker BYD Co has started to expand its product line-up and capacity by launching a series of moves recently, China Daily reported.

On July 24, BYD signed a deal with Foshan Weishang Technology Industry Development Group in Guangdong province to purchase the group's total stake in Hunan Midea Coach, an ailing bus-maker from Changsha city of Hunan province, for 60 million yuan.

Meanwhile, BYD also inked an agreement with the Changsha government to invest in a bus-and-minivan manufacturing facility with an annual capacity of 400,000 units, focusing on new-energy models.

On July 26, the Shenzhen-based private automaker planned to expand its production facility in Xi'an city of Shaanxi Province by setting up a new plant with an annual output of 400,000 units to produce its F3 cars, other new models and auto parts.

The F3 has become the most popular BYD model, and was China's fourth-best selling car in the first half of this year.

"It's a positive move for BYD to acquire the 54-year-old Midea Coach as it plans to tap into the commercial vehicles segment," said an industry analyst. "The inexpensive acquisition would provide BYD with the necessary government licenses to build buses and coaches."

With its advanced technology in batteries and alternative energy, BYD can grab market share in the government's big purchase plan for new energy buses, which has huge profit potential, the analyst noted.