BYD to build new plant in Xi'an for more capacity

Shanghai, August 12 (Gasgoo.com) On July 26, BYD Auto signed a deal with Xi'an municipality to build a new plant for auto output expansion in the capital city of northwestern China's Shaanxi province, xinhuanet.com reported.

The move is part of BYD's strategies to expand its auto production capacity and product line-up. The new Xi'an facility will have an annual output of 400,000 units to produce its L3, G3, F5 cars and auto parts.

The current BYD auto facility in Xi'an has an annual capacity of 200,000 units, as is its plant in its southern city of Shenzhen, headquarters of the private automaker.

The majority of components for the new Xi'an plant's auto manufacturing will be produced in-house, except tires and glass. Alongside the new facility, BYD will set up an engine plant with capacity for 600,000 sets a year.

Construction on both new plants is scheduled to start in October. BYD will invest a total of 5 billion ($732 mln) in the Xi'an projects to be located in Xi'an Hi-tech Industrial Development Zone.

The recent moves by BYD Co to expand its auto product line-up and capacity include a deal to buy stake in bus-maker Hunan Midea Coach, and a deal to build a bus-and-minivan facility with an annual capacity of 400,000 units in Changsha.