BYD Dreams Up 2010 EV Sales, US Production

Buffett-backed Chinese EV firm BYD is back at the Detroit Auto Show after making its main-floor debut last year. Like most automakers, BYD has toned things down a bit this year, featuring the same vehicle it brought last year, the all-electric e6 crossover. Last year, BYD said the 250-mile, 14-sec 0-60 e6 would be coming to the US at an estimated $40k pricetag. This year, BYD’s Fred Ni is telling ABC that the e6 could be more reasonably priced, implying that it would be sold at a price point comparable to similar gas-powered vehicles.

Because BYD has had so much success in China with its gas-powered cars (its F3 is China’s top-seller), it’s focusing on establishing an EV beachhead in mature markets like the US. That means low volumes at first and a California-only rollout, as the company seeks to build brand awareness. Once the firm gets a toehold though, watch out. “There might not be a profit initially, but we’ll have to sell it [the e6] at a reasonable price,” Li explains to Kicking Tires. “Once we see reasonable demand we want to move major production facilities to the U.S.”

BYD’s big news in Detroit appears to center around their claim that the e6 will roll out in California this year. “The U.S. is a very important market for BYD in the future, and the electric vehicle is our future,” Chairman Wang Chuanfu tells BusinessWeek. “We will start toward the market in the second half.” Of course, last year BYD said they would have the e6 on sale in China by the end of 2009, and apparently that has yet to happen. Meanwhile, BYD’s Dual Mode hybrids aren’t exactly selling like hot cakes either (likely to their high cost relative to the rest of the Chinese market).

Nothing about the EV market is certain right now, but BYD is clearly playing the game with considerable patience. Of course the e6 still has to pass US certification, crash testing, and the gauntlet of journalists waiting to shoot down a $40k Chinese EV. On the other hand, if it does pass these hurdles, it could keep the Volt from looking cutting edge and break down some of the fear factor surrounding Chinese cars. BYD is in for an interesting 12 months or so.