BYD said Friday that it is launching a new brand of vehicles. The Chinese manufacturer of electric vehicles and plug-in hybrids looks to be continuing its push into the higher end of the market, where it will more directly challenge
Tesla.
BYD
(ticker: 1211.HK) said the Fang Cheng Bao brand will range from off-road vehicles to sports cars. Its first entry will be an SUV to be released this year.
BYD shares closed up 1.4% in Hong Kong on Friday.
BYD is the largest seller of EVs in China and has built its brand on the back of lower priced vehicles. However, it has recently broadened its range, unveiling entries for its luxury Yangwang brand earlier this year with expected prices of more than $140,000.
The company didn’t give any details on pricing or where it intends to sell the Fang Cheng Bao brand on Friday. However, it is likely to intensify its competition with Tesla (TSLA) in China, where the two companies have both been cutting prices for their vehicles.
Chinese media previously reported there would be both electric and plug-in hybrid versions of the initial SUV.
“Many people think that the global e-mobility transition is a revolution in the automobile industry, where vehicles powered by fossil fuels get replaced by electric cars. However, from BYD, we believe this is only a minor part of the whole transition, and a greater realm is unfolding,” BYD Chairman Wang Chuanfu said in a statement on the brand launch on Friday.
Warren Buffett’s
Berkshire Hathaway
(BRK.B) is a longtime investor in BYD, although it has sold shares in the company in recent months.
Write to Adam Clark at [email protected]
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