GUANGZHOU – Guangzhou Automobile Group Co., Ltd. (GAC) and BYD Auto signed an agreement on April 23 to set up GAC BYD New Energy Bus Co., Ltd. in Conghua of Guangzhou.
According to the agreement, the two parties will establish the GAC BYD new energy bus headquarters, export base and R&D center in Conghua Pearl Industrial Park. The joint venture will engage in the R&D of NEV technology, develop and produce pure electric buses, hybrid buses, traditional medium buses for commercial use and key components. Besides serving the local market, the JV will expand to the overseas market as well.
According to the Guangzhou municipal government, the city will promote 10,000 new energy vehicles by the end of 2015, including 2,000 new energy buses.
GAC, as a leading state-owned enterprise in Guangzhou, witnessed one million units sales in automobile sector and motorcycle sector respectively in 2013.
Founded in 1995, BYD Auto has IT, automobile and NEV businesses at current stage. BYD Auto has plants in Xi’an, Shenzhen, Beijing, Shanghai, Huizhou, Changsha, Shaoguan and Nanjing since its establishment in 2003.
On April 29, BYD Auto signed another strategic cooperation agreement with Hanghzou municipal government.
With an investment of ¥1.5 billion ($240 million), the BYD Hangzhou plant will have a production capacity of 3,000 pure electric buses annually after completion. As expected, Phase I project will be put into operation in the first quarter of 2015 with an investment of ¥1 billion. The second phase will be finished in the first quarter of 2016 with annual output revenue of ¥6 billion. The plant will become an important production base of BYD in East China.
BYD’s K9 electric bus has been put into operation in Shenzhen, Changsha, Xi’an and Tianjin with good feedbacks and stable data. The e-bus fleet in Shenzhen has accumulated operational kilometers of 22 million with longest operational kilometers over 160,000 for a single unit. BYD electric bus also entered into the Hong Kong market recently.
In Europe, BYD K9 electric bus also went into operation in London, Paris, Bremen, Bonn, Madrid, Barcelona, Salzburg, Warsaw, Amsterdam, Brussels and Budapest. The Schiermonnikoog island of the Netherlands has replaced all buses of the island with BYD e-buses. The Amsterdam Schiphol Airport also purchased 35 units of the K9 bus recently.
Overseas expansion of BYD includes the American market as well. BYD electric buses also went into operation in the U.S., Canada, Brazil, Uruguay, Chile and Mexico.