Could BYD Become the Next Big Name in Electric Vehicles?

Could BYD become the next big name in electric vehicles?
Could BYD become the next big name in electric vehicles?

Over the last few weeks it has become apparent that Chinese electrical company BYD is fast becoming the new name in the electric vehicle market. While the company still has a major presence in mobile phones and tablets there has been a significant shift in operating focus towards the electric vehicle market. Indeed the BYD e6 is starting to pick up sales and the BYD eBus already has a number of significant sales in the bag.

This is a company which has in many ways entered the industry under the radar and while not necessarily targeting the luxury end of the market, there is no doubt that the company is now more noticeable than ever before.

How has BYD financed the move into electric vehicles?

While BYD is in itself a relatively large electronic company it is maybe the fact that the Chinese government is offering both financial and physical assistance to those companies operating in the electric vehicle market which is making a difference. It would be wrong to suggest that this move into the electric vehicle market has been obtained on a shoestring but the company is not over extravagant on marketing.

Quote from ElectricForum.com : "The BYD eBus electric bus recently undertook a journey from Krakow to Warsaw. If you expect this to be a traditional electric vehicle run out to test the technology you will be surprised to learn it was able to extract 265 miles on a full battery charge. Even though this was at night and at relatively low speeds, this is still a major achievement and when you bear in mind there was still 31% battery charge left after it arrived in Warsaw this is some feat."

Even though many governments around the world are talking the talk with regard to funding for electric vehicle related operations, it seems as though the Chinese government is walking the walk as well. It will be interesting to see how far this support from the Chinese government extends and indeed how successful and how large a player BYD can become in the worldwide electric vehicle market.

Public transport and general transport

It is interesting to see that the company's two main electric vehicles are the BYD e6 and the BYD eBus and while sales figures to date have been very different, they are making progress. Indeed the company recently announced an order for its BYD eBus in the U.S., despite the fact that the BYD e6 is finding it difficult to break into that particular market. Perhaps by hedging its bets, and looking at public transport and general transport, the company will look to make the best of both worlds?

Public transport is perhaps a lot more developed from the electric power front than many of us might assume. There are already electric buses and electric trains around the world and it seems as though more focus has been placed upon this sector in the short term than some areas of the wider electric vehicle market. The fact that governments, and local authorities, across the globe are now looking to encourage the use of electric vehicles puts them in a very difficult situation, how can they ask individuals to use electric vehicles without transferring public sector transport services to that particular mode of transport as well?

Conclusion

While the electric vehicle market is still developing, there is no doubt that the likes of BYD have effectively sneaked in under the radar with exposure, albeit relatively small at the moment, to some of the major markets around the world. The introduction of both an electric vehicle for the mass motoring public together with an electric bus for transport services could turn out to be a very lucrative manufacturing decision.

There is also the might of the Chinese government behind the electric vehicle sector, backing companies such as BYD with finance and practical assistance.