BYD Starts Mass Electric Car Production

Shenzhen, China-based BYD Automobile Co. Ltd. reports that after close to four years of research and tests, the final version of a new model using hybrid and electric technologies will be ready to launch in the second half of 2008. The environment-friendly car can be recharged with gasoline or batteries.

The delayed production was mainly due to high cost factors, which were resolved with cheaper raw materials. BYD opted for iron-based rather than lithium batteries for its larger capacity and to reduce production costs.

A relative newcomer to the auto industry, BYD started off specializing in rechargeable batteries and LCD products. It has since grown to become one of China’s largest private auto manufacturers, reporting a net profit margin of 8.25% last year.

The current version of its first F3 model is a five-door hatchback, the F3-R.

The company plans to produce and sell 300,000 cars next year and 500,000 in 2009.