China's BYD to Build the 4th EV Plant for US$ 1.5 Billion

By IndraStra Global News Team

The new facility in Changzhou National Hi-Tech District (CND) to roll out 400,000 vehicles/year.

By IndraStra Global News Team


Image Attribute: BYD's Tang EV600 / 2018

On April 25, 2019, Chinese plug-in electric vehicle (EV) maker BYD ("Build Your Dreams" company) announced that it will set up a manufacturing facility (the fourth plant) for EVs and EV components in Changzhou National Hi-Tech District (CND) for an expected investment of 10 billion yuan (US$ 1.5 billion). Just two days after, on April 28, BYD reported a 632% jump in profits in the first quarter from a year ago.

BYD's new manufacturing facility will be capable of churning out Dynasty series and "e" product series (pure electric vehicles ranging from A00-class to C-class, spread across to ten models). With an annual production capacity of 400,000 complete vehicles, the company will deliver a production value of over 50 billion yuan annually (once the manufacturing plant goes online). The company also plans to eventually set up a research and development (R&D) center in Changzhou.

Wang Quan, secretary of Changzhou Municipal Committee of CPC, said during his meeting with Wang Chuanfu, founder and chairman of BYD, - "Establishment of the new facility is in line with the ongoing trends of the EV sector, as well as with BYD's growth strategy and Changzhou's planning for its next stage of development. The win-win collaboration between BYD and the city of Changzhou brings together the carmaker's strengths in branding, technologies and market presence with Changzhou's advantages in industrial development, talent and strategic location, creating a synergy that is expected to bode well for the development of China's EV sector in terms of technological innovation and industrial competitiveness as well as the country's roadmap towards becoming a leading provider of medium and high-end renewable energy products worldwide."

The BYD chairman expressed his confidence in the strategic partnership, adding that "the new facility represents an important milestone for both Changzhou and BYD while the project will facilitate both parties' efforts in gaining a strong footprint in a new wave of industrial reform."

Image Attribute: The signing ceremony - China's BYD to produce EVs in Changzhou National Hi-Tech District / Dated: April 25, 2019

Image Attribute: The signing ceremony - China's BYD to produce EVs in Changzhou National Hi-Tech District / Dated: April 25, 2019

Meanwhile, BYD is rapidly scaling up existing EV plants. The company is spending 2 billion yuan at its Xi'an factory in central China to lift annual output capacity to 400,000 units from 100,000. Facilities in the central city of Changsha will receive 3 billion yuan to increase capacity to 300,000 units by next year, up from 100,000. The company controls a fifth of China's EV market, the largest in the world and sold about 250,000 of them last year - without officially disclosing its production capacity for EVs. 

About 25 years ago, BYD started out as a battery manufacturer and gradually transitioned into the EV manufacturer a little more than a decade ago. In 2008, the success of its first mass-produced hybrid caught the attention of Warren Buffett, the CEO of Berkshire Hathaway, who bought a 9.9% stake in BYD for US$ 230 million. Market watchers believe that despite having such impressive growth, the company always operated within China to avoid intellectual property litigations in the international courts. However, at the same time, not even a single complaint about intellectual property violations has been registered against BYD. No matter what people say, this company is going to give the competitors run for the money. 
Name

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IndraStra Global: China's BYD to Build the 4th EV Plant for US$ 1.5 Billion
China's BYD to Build the 4th EV Plant for US$ 1.5 Billion
By IndraStra Global News Team
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