Story Filed: 04/03/2008 23:55:30 EST

By Hugh Poulter

 

 

In 1995, a small Chinese company with 20 employees started making batteries. Within 10 years it controlled 65 percent of nickel-cadmium battery sales globally and became the world’s largest supplier of cell phone batteries, employing more than 120,000 people.

 

Today, BYD announced it will be selling cars in Europe within three years.

 

In January BYD — which stands for “Build Your Dreams” — had a small stand tucked away downstairs at the Detroit auto show. Today, it showed a range of five cars on a large stand neighboring Mercedes Benz and Rolls-Royce. Within just two months, this company has learned and moved on.

 

BYD moved into the Chinese automotive business in 2005 by acquiring Tsinchuan Automobile Company and developed a small range of gasoline-powered vehicles. It has sold 450,000 units including 100,000 last year and predicts 70 percent year-on-year growth.

 

But for the North America and Europe it has a far bolder strategy. By mobilizing its 6,000 strong R&D resources in China, it plans to develop battery hybrids offering easy charging and more miles per charge at a lower cost than any other hybrids available on the market.

BYD Auto General Manager Henry Z. Li said the cars would be developed and styled for European markets from China with input from consultants. “The DM (Dual Mode) technology is the right product for Europe. The design is not finalized yet and the styling can be changed…it is the technology that is important.”

 

It is betting on its Dual Mode hybrid and pure electric vehicles to provide an entrance into international markets. The pure electric vehicle has household plug-in capability while the hybrid vehicle can freely switch between pure electric and hybrid power modes.

 

BYD showed Geneva the car it had unveiled in Detroit — the F6 DM hybrid. They claim the car has a range of 190 miles from its pure electric and hybrid electric system. The battery can take a 50 percent charge in 10 minutes and a full charge takes 9 hours. Its battery alone gives it a range of 60 miles at highway speeds.

 

BYD claims it can convert any of its cars to hybrid power for just $6,000. Apart from this, while BYD’s cars on display were not exciting from a design point of view, they had a build quality that would not be out of place on North American roads. Our bet is that this company will become a major player in the global auto industry faster than anyone expects.