BYD hopes for big share in China's e-car program

Chinese electric car and battery maker BYD Co Ltd hopes to be a top supplier in incentive programs to boost the use of electric cars in Chinese cities, a senior executive told Reuters on Monday.

"The Chinese government supports ten cities to each have 1,000 electric vehicles for public transportation," Henry Li, general manager of BYD Auto's export trade division, told Reuters on Monday at the sidelines of the Frankfurt Motor Show.

"With this we already have a quite high demand for electric vehicles", he said, adding BYD hoped to supply a big number of e-cars for this program in the coming years. "But there is a lot of competition, so it is hard to say, how many (contracts) we can actually get."

Li said demand for electric cars would first come from governments, taxi businesses and corporate fleets in all markets. "The trend is to go electric, but how much and how long the government will support (the electric car segment) is very difficult to say," he said.

BYD will launch its e6 electric vehicle by the end of 2009 in China, expecting sales of a "few hundreds" of cars in the first year. In 2010, the e6 will be introduced to the United States, Li said, adding: "Our forecast for (market launch in) Europe is: before the end of 2011."

BYD has ambitious plans for its hybrid and rechargeable electric vehicles, aiming to sell as many as 9 million units by 2025 to take on heavyweights like General Motors and Toyota Motor Corp.

BYD and Europe's largest automaker Volkswagen signed a memorandum of understanding in May to explore the options for partnership in the area of hybrids and electric vehicles.

"Talks with further European and U.S. companies are ongoing," Li said, adding "nothing has finalized yet."

There were no plans at present to give U.S. investor Warren Buffett a higher stake in the company, Li reiterated, echoing remarks of the billionaire in a recent Reuters interview.