China’s BYD “Tang” Plug-in Hybrid SUV
By Alysha Webb, Editor and Publisher
Chinese automaker BYD is not currently in discussions with Berkshire Hathaway Automotive about selling BYD vehicles through its retail network, BYD America executives told Automotive Buy Sell Report at a recent event in Los Angeles. But BYD does plan to try again to sell electric passenger vehicles in America, they said.
“We are very keenly interested in being able to bring an all-electric car [to the U.S. market] with a mix of plug-in hybrid electric vehicles” as well, said Macy Neshati, vice president of sales for BYD Coach and Bus.
However, BYD is not currently talking with Berkshire Hathaway Automotive about using its distribution network, said both Neshati and Matthew Jurjevich, market research analyst with BYD America Corp.
“That is 100 percent speculation,” said Jurjevich.
He said that he is on the expansion team and that retail sales are definitely on BYD’s roadmap for the U.S. However, it is currently concentrating on building a global market for its electric buses, including manufacturing and selling them in the U.S.
BYD America wants to “do everything right first” with the buses before it moves to the electric vehicle retail market, said Jurjevich.
Yes, Warren Buffett is an investor in BYD Co.
Any story in the U.S. press about Chinese automaker BYD invariably notes that Warren Buffett has invested in the company. Berkshire Hathaway bought 9.9 percent of Hong Kong-listed BYD Co. Ltd. in 2008.
After Berkshire Hathaway acquired the Van Tuyl Group in 2014, most stories also included a line to the affect that those dealerships could also be used to sell BYD vehicles here in the U.S. That would almost certainly mean one or more of BYD’s electric vehicle models.
BYD includes much more than automotive assets. It is also the world’s largest supplier of rechargeable batteries for mobile phones, and manufactures solar panels as well as cell phone rechargers and key pads.
Its vehicles, both electric and gasoline-powered, have generally been considered inexpensive but low-quality. In the past few years, however, BYD has worked hard to improve its cars’ quality and image. Its first electric vehicle, the pure-electric e6, sold poorly. It seems to have been relegated to taxi fleet status for now.
Meanwhile, its new plug-in hybrid electric (PHEV) models have proven popular in China. Final figures aren’t yet available, but 2014 sales of the Qin PHEV sedan were expected to be around 15,000 units, said BYD. It expects its Tang PHEV SUV, launched in January, to sell substantially more. More PHEV SUV models will follow.
According to LMC Automotive, BYD sold 437,725 light vehicles in 2014, down 14 percent compared to 2013.
When BYD opened its North American headquarters here in Los Angeles in late 2011, it planned to build a dealership network and sell the e6 pure electric crossover. But the vehicle was not ready for prime time in the U.S. market. Its fit and finish were not up to U.S. consumer standards, among other issues.
So BYD put those plans on hold to concentrate on selling its electric buses here in the U.S. To that end, it opened a manufacturing plant in Lancaster, Calif. in 2013.
The recent Los Angeles event was to introduce a 60-ft. articulated electric bus. BYD already has a number of its 40 ft. electric buses in operation in municipal fleets around the world., including five scheduled to operate soon in Los Angeles.
It has never abandoned the dream of selling electric light vehicles here in the U.S., however. As for what kind of electric passenger vehicles BYD will attempt to sell in the U.S., while VP of sales Neshati said BYD wants to introduce pure electric cars here, I think the PHEV models are the best bet.
Market research analyst Jurjevich would only say, “Our philosophy is to sell affordable vehicles.” Given the still-high cost of batteries, that likely means PHEVs in the near term.
As for whether or not those BYD PHEVs will be at one of Berkshire Hathaway Automotive’s dealerships, I won’t speculate about that for now.
