Update: 3/19/10
BYD decided to delay the widely anticipated commercial rollout of its Model E6 electric car, which was scheduled for late 2010. They will build only 100 E6s to be used as taxis instead. Further development of EVs depends on the success of the taxis.|
BYD says it still plans to introduce its F3DM plug-in hybrid in the US by the end of the year, and will market hybrids and the E6 EV in Europe next year. The plug-in went on sale in China on April 1.
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BYD Company (1211.HK; BYDDF.PK)
Shenzhen, China
Market Cap: $157B
Price: $68.90
52 Week Range: $13.38-88.40
Rating: Hold
www.byd.com/
BYD Company, which stands for Build Your Dreams, emerged from relative obscurity when Warren Buffet's Berkshire Hathaway (BRK.A, BRK.B) spent $231 million for a 10% stake in September 2008.
Founded by China's wealthiest man, BYD is the world's largest producer of rechargeable batteries and a major car manufacturer in China, which recently surpassed the US as the world's largest market for cars. It also makes handsets and parts for mobile phones. Its F3 sedan was the bestselling automobile in China last year.
Wang Chuanfu founded BYD in 1995 and has rapidly grown the company to 130,000 employees. Revenues have grown about 45% annually over the past five years, reaching $4 billion in 2008.
Just five years after it opened its doors, BYD became one of the world's largest cell phone battery manufacturers, making batteries for iPods, iPhones and low-cost computers, and cell phone handsets and parts for majors like Nokia and Motorola. In 2003, BYD entered the auto-making business by buying a near defunct state-owned car company, and went public on the Hong Kong exchange in 2007.
The company has its sights set on becoming China's top automaker by 2018 and a major global player by 2025 with 8-9 million vehicle sales. Last year, BYD sold 400,000 cars and plans to double that this year through increased exports.
When it introduces the e6 EV in California this year it will be the first Chinese vehicle-maker to sell in the US. It plans to export the EV to Europe next year.
The e6 has a top speed of 87 mph, travels 205 miles on a single charge and only takes about an hour to charge. Some say the car won't sell well in the US because its design looks outmoded to Americans, and the quality of body panel fit and paint finish doesn't meet US standards. The price tag will be a steep $40,000, on par with GM's Chevy Volt.
Last year, BYD launched the world's first plug-in hybrid, the F3DM sedan, but sold fewer than 100 units in the first eight months. It goes 62 miles on a charge and sells for only $22,000.
Solar Too
BYD is also leaping into solar with a vertically integrated manufacturing model. It began building a massive $3.3 billion, 5 GW crystalline silicon plant in 2009, to be completed in 2015. The company claims its proprietary production process can cut polysilicon costs in half.
Future Village, a small complex at its corporate headquarters, runs on eight wind turbines and solar PV, all made by BYD. There's also an energy storage unit that captures excess solar and wind energy, also made by BYD.
BYD's entry into solar is supported by government subsidies, land rights to two silica mines, and the purchase of its output.
